NEW DELHI: United State Secretary of Commerce Gina M. Raimondo and India Union Commerce & Industry minister Piyush Goyal on Friday signed a Memorandum of Understanding (MoU) on semiconductor supply chain and innovation partnership. The MoU was signed as part of the India-US Business Dialogue, which took place today in New Delhi. 

In light of the US CHIPS and Science Act and India's Semiconductor Mission, the Ministry of External Affairs stated that this MoU aims to create a collaboration mechanism between the two governments on semiconductor supply chain resiliency and diversification.

Through conversations on many parts of the semiconductor value chain, it intends to take advantage of the complementary strengths of both countries and encourage economic opportunities and the growth of semiconductor innovation ecosystems.

The deal  envisages mutually beneficial Research and development, talent and skill development, the statement said.
Today saw the resumption of the India-US Commercial Dialogue, which will address how the two nations might work together to open up new trade and investment prospects.

The Commercial Dialogue is an initiative that brings together regular government-to-government and private sector gatherings with the goal of promoting trade and maximising investment opportunities across a wide range of economic sectors.

The implementation of a semiconductor programme by India and the US is a joint priority, according to Raimondo's remarks from Thursday.

Nevertheless, the last India-US Commercial Dialogue was conducted in February 2019. Since then, it has been impossible to hold due to the epidemic and other circumstances. After a three-year hiatus, it is planned to relaunch the Commercial Dialogue with a strategic approach and an emphasis on supply chain resiliency and diversification as well as new emerging areas.

On November 9, 2022, the US Secretary of Commerce and the Indian Minister of Commerce and Industry soft-launched the India-US CEO Forum. The forum's key priorities were to advance inclusive digital trade, increase supply chain resilience, improve energy security, and reduce greenhouse gas emissions overall. It also sought to facilitate post-pandemic economic recovery, particularly for small businesses.

According to a statement from the ministry of commerce and industry, India is the US's ninth-biggest trading partner while the US is India's largest trading partner and top export market. The bilateral trade in goods doubled since 2014 (in 8 years) and surpassed USD 131 billion in CY2022, while the total trade in goods and services is anticipated to surpass USD 180 billion.

According to a statement from the ministry, the US is one of India's top five investment destinations and the third-largest source of foreign direct investment (FDI) for that country.

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