Under the scope of the India-US Commercial Dialogue, which was reactivated after three years, India and the US inked an agreement on Friday to establish a semiconductor supply chain and innovation collaboration and established a semiconductor sub-committee.

The Ministry of Electronics and Information Technology (MeitY) and the Ministry of Trade and Industry of India, as well as the US Department of Commerce, will head the subcommittee. Before the end of 2023, the subcommittee's initial meeting is anticipated.

Secretary Gina Raimondo and Minister Piyush Goyal seek to use the Commercial Dialogue to strengthen public and private efforts to encourage industrial collaboration in the semiconductor sector, acknowledging the significance of the US and Indian markets to the global electronics industry. In order to guarantee that the US and Indian semiconductor businesses build deeper relationships, complementing ecosystems, and a more varied supply chain for semiconductors, these activities will identify possibilities for development and problems to overcome, according to a joint statement.

The scarcity of these chips, which had major ramifications including disruptions in the supply of electronics and automobiles in both nations, notably after the Covid-19 epidemic, provides the backdrop for the cooperation on semiconductors.

The US wants India to succeed in its goals of taking a bigger part in the technology supply chain. The US Commerce Secretary Gina Raimondo informed reporters in a joint briefing that "we have already started action on the MoU, tasking both the Indian and American semiconductor industries to prepare an assessment of where they have gaps and lack of resilience in the supply chain and that will guide our work.

The Commercial Dialogue, which is co-chaired by Raimondo and Minister of Trade and Industry Piyush Goyal, is a part of continuing initiatives to deepen the US-India Comprehensive Global Strategic Partnership.