India's Tech Industry Aims to Offset US Tariffs Through AI and Emerging Tech Collaborations

New tie-ups in AI, chips, biotech can soften US tariff blow

India's $254-billion tech outsourcing industry aims to offset US reciprocal tariffs by expanding into AI, semiconductors, and biotech. Bilateral talks and initiatives like TRUST and Mission 500 will drive US-India tech collaboration and trade growth.India's $254-billion technology outsourcing industry, which generates more than 70% of its revenues in North America, will likely be able to offset the impact of reciprocal tariffs with collaboration in new revenue streams such as artificial intelligence, semiconductors, quantum, and biotechnology. "Even as the announcement of reciprocal trade tariffs by the US is a near-term concern for India, of a trade deficit of around $44 billion (annual), services deficit is less than $6.5 billion only," said an economic policy expert, who did not wish to be named. "Hence, a large part of the trade deficit discussions would be focused toward goods and it seems there is a potential of increased oil and gas imports. As of fiscal 2024, The US was the major software export destination with a 54% share, followed by Europe (31% share), where the United Kingdom was a major destination country, showed Reserve Bank of India (RBI) data. India's technology industry, experts said, sees an opportunity in the bilateral conversations shaping up between Washington and New Delhi within the next 6-8 months. India's apex technology body Nasscom said, on an ongoing basis, it is engaged with private sector executives and the Department of Commerce, and will play a critical role in growing tech partnerships, promoting investments in US and India. "India's technology industry will focus on enabling both governments to achieve the key objectives set out in the recent joint statement of President Trump and our Prime Minister," Shivendra Singh, vice president - global trade development at Nasscom told ET. Also Read: India to take up Biden's AI chip export curbs with Trump govt "This will include contributing to the 'Mission 500', playing a key role in more than doubling the bilateral trade by 2030. We will work on supporting the TRUST initiative, focusing on AI collaboration between the two nations," Singh said. 'Mission 500' aims to more than double total bilateral trade to $500 billion by 2030. In a joint statement from Washington last week, the two leaders launched the US-India TRUST ("Transforming the Relationship Utilizing Strategic Technology") initiative, under which the private sector will put forward a roadmap to accelerate AI infrastructure by the end of this year. The two nations will also cooperate on building data centers, accessing AI compute as well as building AI models and applications.

Tie-ups in AI, semiconductors and biotech may soften US tariff blow

Mumbai: India's $254-billion technology outsourcing industry, which generates more than 70% of its revenues in North America, will likely be able to offset the impact of reciprocal tariffs with collaboration in new revenue streams such as artificial intelligence, semiconductors, quantum, and biotechnology. "Even as the announcement of reciprocal trade tariffs by the US is a near-term concern for India, of a trade deficit of around $44 billion (annual), services deficit is less than $6.5 billion only," said an economic policy expert, who did not wish to be named. "Hence, a large part of the trade deficit discussions would be focused toward goods and it seems there is a potential of increased oil and gas imports. As of fiscal 2024, the US was the major software export destination with a 54% share, followed by Europe (31% share), where the United Kingdom was a major destination country, showed Reserve Bank of India (RBI) data. India's technology industry, experts said, sees an opportunity in the bilateral conversations shaping up between Washington and New Delhi within the next six-eight months. India's apex technology body Nasscom said, on an ongoing basis, it is engaged with private sector executives and the Department of Commerce, and will play a critical role in growing tech partnerships, promoting investments in US and India. "India's technology industry will focus on enabling both governments to achieve the key objectives set out in the recent joint statement of President Trump and our Prime Minister," Shivendra Singh, vice president - global trade development at Nasscom told ET. "This will include contributing to the 'Mission 500', playing a key role in more than doubling the bilateral trade by 2030. We will work on supporting the TRUST initiative, focusing on AI collaboration between the two nations," Singh said. 'Mission 500' aims to more than double total bilateral trade to $500 billion by 2030. In a joint statement from Washington last week, the two leaders launched the US-India TRUST ("Transforming the Relationship Utilizing Strategic Technology") initiative, under which the private sector will put forward a roadmap to accelerate AI infrastructure by the end of this year. The two nations will also cooperate on building data centers, accessing AI compute as well as building AI models and applications.