India, US to boost trade in GPUs, advanced tech under interim pact framework

India and the United States outlined plans to expand trade in advanced technology products, including graphics processing units (GPUs) used in data centres, under a framework for an interim trade agreement announced by the two countries on 7 February.

The framework, unveiled after talks between US President Donald J. Trump and Prime Minister Narendra Modi, positions high-end computing hardware as a core pillar of a broader US–India push on supply-chain resilience, digital trade and strategic technology cooperation.

“India and the United States will significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centres, and expand joint technology cooperation,” the two governments said in a joint statement. 

The emphasis on GPUs, critical components for artificial intelligence (AI) training, cloud computing and large-scale data centres, comes as both countries look to reduce dependence on third-party supply chains and tighten coordination on export controls.

The statement said Washington and New Delhi agreed to “strengthen economic security alignment to enhance supply chain resilience and innovation,” including cooperation on inbound and outbound investment reviews.

As part of the interim framework, the US and India also committed to addressing barriers to digital trade and setting a pathway toward “robust, ambitious, and mutually beneficial digital trade rules” under a future bilateral trade agreement. 

As part of the announcement, India plans to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.

“The United States and India will promptly implement this framework and work towards finalising the Interim Agreement with a view to concluding a mutually beneficial BTA,” the statement said.