Technology cooperation has emerged as a central pillar of the interim trade framework announced by the United States and India, with a clear spotlight on graphics processing units and data centre infrastructure.

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 between the two countries.

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The announcement signals a deeper alignment at a time when access to advanced computing hardware is becoming critical for artificial intelligence development, cloud services and large-scale data processing.

India’s Big Buying Plan Includes Tech

Alongside the technology push, India has indicated it intends to purchase $500 billion worth of US goods over the next five years. The proposed imports span a wide range of sectors, including energy, aircraft and aircraft components, precious metals and technology products.
In this mix, GPUs are particularly significant, particularly as India speeds up its AI and data centre initiatives.

GPUs Matter For India’s AI Push

India’s development of GPUs also relates to the IndiaAI mission supported by the Indian government.
The Rs 10,000 crore programme is designed to subsidise access to high-end computing for startups, researchers and institutions building AI models.

So far, more than 30,000 GPUs have already been allocated under the mission, highlighting how central compute capacity has become to India’s technology roadmap.

Shift from Earlier US Policy

The renewed emphasis on GPU trade, meanwhile, represents an evolution away from the strategy employed during President Biden’s term.

The previous administration in the US introduced various export control policies. The policies were developed with the aim of limiting access to certain countries in America regarding advanced levels of AI chips. The introduction of these policies was very related to the CHIPS and Science Act, where there was a need to ensure enhanced levels of manufacturing of semiconductors locally.

While the controls were largely designed to limit China’s access to advanced computing, they also added new licensing and compliance hurdles for other countries, including India.

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Indian industry leaders had warned at the time that prolonged uncertainty around GPU availability could slow data centre expansion and weaken momentum in AI research and deployment.

Also on the table: digital trade

Beyond hardware, the joint statement points to broader digital trade ambitions: both countries commit to expanding technology trade and to pursuing more ambitious and mutually beneficial digital trade rules under the proposed Bilateral Trade Agreement.

Taken together, the framework suggests a more open and collaborative phase in India–US tech relations, with GPUs and data infrastructure now firmly at the centre of the conversation.


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