Context: India and the United States have launched a Transforming Relationship Utilizing Strategic Technology (TRUST) initiative during the recent visit of the Indian Prime Minister to the US.
Relevance of the Topic: Prelims: Key facts about TRUST initiative.
About TRUST initiative
- U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative will catalyse government-to-government, academia and private sector collaboration to promote application of critical and emerging technologies in areas like:
- Artificial intelligence
- Semiconductors
- Quantum
- Biotechnology
- Energy
- Space and
- Defence
Key Features of TRUST Initiative
1. Cooperation in critical minerals sector:
- Create robust supply chains for semiconductors, critical minerals and advanced materials.
- Launch of the Strategic Mineral Recovery initiative, a new U.S.-India program to recover and process critical minerals (including lithium, cobalt, and rare earth elements) from heavy industries like aluminum, coal mining and oil and gas.
- Accelerate R&D and promote investment across the entire critical mineral value chain, as well as through the Mineral Security Partnership (MSP).
- TRUST initiative follows India’s induction into the US-led Minerals Security Finance Network in September 2024 and the Minerals Security Partnership (MSP) in 2023.
2. Cooperation in Pharmaceutical sector:
- Encourage public and private investments to expand Indian manufacturing capacity, including in the U.S., for active pharmaceutical ingredients (API) for critical medicines.
- Create robust supply chains for pharma with focus on APIs, which often depend on critical minerals like lithium, magnesium, zinc, and selenium.
- India is the world’s second largest manufacturer of APIs after China.
- Pharma products made up the largest share (21.9%) of the $20 billion worth of final consumer goods that India exported to the US in 2023.
3. Cooperation in Artificial Intelligence:
- The U.S. and India will work together to enable:
- industry partnerships and investments in next generation data centers
- cooperation on development and access to processors for AI
- innovations in AI models and building AI applications for solving societal challenges.
- U.S. and Indian private industry to put forward a U.S.-India Roadmap on Accelerating AI Infrastructure by the end of 2025.
Significance of TRUST Initiative
- Enhance bilateral trade: Reduce barriers to technology transfer, address export controls, and enhance high tech commerce between India & the US in the critical minerals sector.
- Boost innovation: Catalyse collaboration among governments, academia and private sector to drive innovation in defence, artificial intelligence, semiconductors, quantum computing, biotechnology, energy and space.
- Diversify supply-chains: Investments in the pharma sector (API) will create jobs, diversify vital supply chains, and reduce the risk of life-saving drug shortages in both the US and India.
- Counter-China: Position India and the US to counter China’s dominance in critical minerals supply chains.
While the TRUST initiative falls short of giving Indian companies tax benefits from the US Inflation Reduction Act (IRA) for battery components and critical raw materials – a privilege that is extended to Japanese companies – it still broadens the scope for collaboration significantly.
India-US Collaboration in Critical and Emerging Technology sectors:
1. initiative on Critical and Emerging Technology (iCET):
- In 2022, India and the US had announced the initiative on Critical and Emerging Technology (iCET)
- Aim: To deepen technology cooperation, specifically on semiconductors, wireless communication, quantum computing artificial intelligence (AI), with a focus on defence and security-related applications.
2. Minerals Security Partnership (MSP):
- The MSP is a US-led collaboration of 14 countries that aims to catalyse public and private investment in critical minerals supply chains.
- In addition to the US, it includes India, Australia, Canada, Estonia, Finland, France, Germany, Italy, Japan, the Republic of Korea, Sweden, the UK, and the European Union (represented by the European Commission).
3. CHIPS Act Collaboration:
- International Technology Security and Innovation (ITSI) Fund:
- Created under the US CHIPS Act (2022).
- Supports India's efforts to enhance its semiconductor ecosystem by funding critical infrastructure and R&D.
- Facilitates cross-border investments and diversification of global supply chains.
4. INDUS-X Initiative:
- Collaboration between: India's iDEX (Innovations for Defence Excellence) and the US Defense Innovation Unit (DIU).
- Purpose: To promote innovation in defense technologies, including semiconductors for military applications.
- Focus: Security-focused chip designs; applications in green energy and telecommunications.
Significance of Critical minerals in strategic sectors:
- Critical minerals and REEs are essential for strategic industries, including defence, semiconductors, quantum computing, energy, and space. Examples:
- Neodymium, praseodymium, and samarium: High-performance magnets used in missiles, fighter jets, and radars.
- Lithium, cobalt, and nickel: Advanced batteries for energy storage and electric vehicles.
- Gallium and indium: Semiconductors and AI hardware.
- Ultra-pure silicon: Quantum computing.
- Scandium: Space technology.
- REEs (Europium and terbium): Biotech imaging and medical diagnostics.
Present status in Critical Minerals
- China controls nearly 70% of global REE production and much of the processing infrastructure, securing diversified supply chains is critical for technological sovereignty and national security.
- India is a net importer of most critical minerals on account of their nil or limited reserve/production in the country.
- The net import bill for critical minerals (excluding lithium) for FY24, was approximately ₹30,000 crore, with net phosphorous imports being the highest at ₹12,648 crore.
- Rare earth elements were the only segment in which India was a net exporter.
- In January 2025, India approved the National Critical Minerals Mission with a budgetary outlay of Rs 16,300 crore over seven years.
- Rs 7,000 crore is allocated for exploration of critical minerals.
- Rs 1,500 crore for an incentive scheme to support the recycling of critical minerals.
Read More: National Critical Mineral Mission