View: Delhi-Washington grip tightening
Current expectations have India's economy expanding at 7.3% for FY24, a slight increase from the 7.2% rate in FY23. Meanwhile, the official estimate released on Thursday suggests the US' annual GDP grew 2.5% in 2023, a significant improvement over the 1.9% recorded the year before.
Both are far above projections advanced at the beginning of 2023. Of course, increases in GDP aren't everything — broad benefits only come when economic expansion is inclusive and sustainable.
In 2023, Prime Minister Narendra Modi was feted during a state visit to Washington in June and President Joe Biden was greeted warmly when he travelled to New Delhi for the G20 leaders' summit in September.
Throughout the year, multiple Cabinet-level officials and senior White House and PMO advisers travelled to both countries to develop a robust bilateral agenda and advance shared priorities. As part of this work, the Indian and American governments showed substantial foresight in launching three initiatives to carry forward commercial cooperation: the Initiative on Critical and Emerging Technology (iCET), Defence Acceleration Ecosystem (INDUS X), and the Innovation Handshake.
Given the two countries' strong economic performance of late, these three work streams create powerful platforms to develop partnerships in AI, cybersecurity, next-generation telecommunications, semiconductors and biotechnology; enhance and integrate defence supply chains with an emphasis on startups and new technologies; and build a stronger and more inclusive innovation ecosystem.
