Technology cooperation has emerged as a central pillar of the interim trade framework announced by the United States and India, with a strong focus on graphics processing units (GPUs) and data centre infrastructure. The move highlights a growing strategic alignment between the two countries at a time when advanced computing hardware is becoming critical for artificial intelligence, cloud services and large-scale data processing.
In a joint statement released on February 7, both governments said they plan to “significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centres,” while also expanding joint technology cooperation. The announcement signals a shift toward deeper collaboration in high-value technology sectors that underpin modern digital economies.
India’s Expanding Import Ambitions
Alongside the technology push, India has indicated its intention to purchase $500 billion worth of US goods over the next five years. These proposed imports span a wide range of sectors, including energy, aircraft and aircraft components, precious metals, and technology products. Within this mix, GPUs stand out as particularly significant, reflecting India’s accelerating investments in artificial intelligence and data centre capacity.
As India scales up its digital infrastructure, access to high-performance computing hardware has become a strategic priority. GPUs, which are essential for training and deploying advanced AI models, are now viewed as foundational assets rather than niche components.
GPUs and India’s AI Mission
The emphasis on GPUs also aligns closely with India’s government-backed IndiaAI mission. Supported by a Rs 10,000 crore programme, the initiative aims to subsidise access to high-end computing resources for startups, researchers and academic institutions developing AI models.
So far, more than 30,000 GPUs have already been allocated under the mission, underscoring how central compute capacity has become to India’s long-term technology roadmap. Policymakers see this investment as essential to maintaining global competitiveness in AI research, innovation and deployment.
A Shift from Earlier US Policy
The renewed focus on GPU trade represents a clear evolution from the approach taken during President Joe Biden’s administration. During that period, the US introduced a series of export control policies aimed at limiting access to advanced AI chips, particularly for China. These measures were closely linked to the CHIPS and Science Act, which sought to strengthen domestic semiconductor manufacturing in the US.
While the controls were primarily designed to curb China’s access to cutting-edge computing, they also introduced licensing and compliance challenges for other countries, including India. Indian industry leaders warned at the time that prolonged uncertainty around GPU availability could slow data centre expansion and dampen momentum in AI research and deployment.
Digital Trade Also in Focus
Beyond hardware, the joint statement points to broader ambitions in digital trade. Both countries committed to expanding technology trade and pursuing more ambitious and mutually beneficial digital trade rules under a proposed Bilateral Trade Agreement.
Taken together, the interim framework suggests a more open and collaborative phase in US–India technology relations. With GPUs and data infrastructure now firmly at the centre of the conversation, the partnership reflects a shared recognition that advanced computing will play a defining role in economic growth and technological leadership in the years ahead.