The India-US TRUST initiative strengthens cooperation in critical minerals, pharmaceuticals, and emerging technologies to reduce dependence on China. It promotes joint research, mining, and technology transfer. The US-India COMPACT focuses on military partnerships, defense technology collaboration, and co-production, aiming to enhance trade, security, and economic ties by 2030.
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India–US TRUST initiative strengthens critical minerals and pharma supply chains, while US–India COMPACT deepens military technology and defence partnerships.
The Transforming Relationship Utilizing Strategic Technology (TRUST) initiative is a bilateral agreement launched by India and the United States.
It aims to deepen cooperation in critical minerals, advanced materials, pharmaceuticals, and emerging technologies like AI, semiconductors, and quantum computing.
The initiative builds on India’s participation in the US-led Minerals Security Finance Network (2023) and Minerals Security Partnership (2023), but focuses on bilateral engagement to counter China’s dominance in critical mineral supply chains.
Critical Minerals Supply Chains
Strategic Mineral Recovery Initiative to recover and process critical minerals (e.g., lithium, cobalt, rare earth elements) from industries like aluminium, coal mining, and oil and gas. This will reduce reliance on China, which controls ~70% of global rare earth production.
Collaboration on research, exploration, beneficiation, and recycling technologies to secure supply chains for defence, semiconductors, energy, and space technologies.
Pharmaceuticals:
The Initiative focuses on active pharmaceutical ingredients (APIs), to diversify supply chains and reduce shortages of life-saving drugs in both countries. Pharma products accounted for 21.9% of India’s $20 billion exports to the US in 2023.
Technology Transfer and Innovation:
Reducing barriers to technology transfer, addressing export controls, and enhancing high-tech commerce, AI infrastructure development, semiconductor collaboration, and defence technology co-production.
Launch of INDUS Innovation, a platform for industry-academic partnerships in space, energy, and emerging technologies.
National Programs:
It aligns with India’s National Critical Minerals Mission (NCMM), a 7-year, ₹34,300 crore program to build a resilient mineral value chain. The US will support NCMM’s goals, including acquiring overseas mineral assets.
It complements the US’s $675 million Critical Minerals and Materials (CMM) program and India’s 2022 Critical and Emerging Technology (iCET) initiative.
Strategic Importance of Critical Minerals
Critical minerals like lithium, rare earth elements (REEs), and cobalt are vital for:
China’s dominance in these sectors poses risks to global supply chains, making diversification critical for national security.
Benefits of the TRUST Initiative
Reduces dependence on China by promoting joint exploration, mining, and processing of critical minerals.
Boosts India’s manufacturing capacity, particularly in APIs and high-tech sectors, creating jobs and exports.
Strengthens India’s role in emerging technologies like AI and quantum computing through collaboration with the US.
Positions India as a key player in the Minerals Security Partnership (MSP), a 14-member group led by the US.
The US–India COMPACT Initiative—standing for Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology for the 21st Century—is a landmark 10-year strategic framework to deepen defence ties, streamline technology transfers, and enhance economic collaboration between the two nations.
Enhance Defense Technology Collaboration
Reduce Export Barriers: The US and India will revisit export controls and International Traffic in Arms Regulations (ITAR) to ease technology transfers. This will enable smoother exchanges of advanced military technologies, including missile defence, space systems, and undersea warfare capabilities.
Joint R&D: Focus on critical sectors like artificial intelligence (AI), semiconductors, quantum computing, and biotechnology to modernize military capabilities.
Accelerate Co-Production and Procurement
Reciprocal Defense Procurement (RDP) Agreement: Negotiations will start in 2025 to allow the seamless purchase and co-production of defence goods, including aircraft, missiles, and unmanned systems. This will reduce bureaucratic hurdles and promote efficiency in defence trade.
Major Procurements: India will acquire Javelin anti-tank missiles, Stryker armoured vehicles, and six additional P-8I Poseidon aircraft for maritime reconnaissance. The US will also review supplying F-35 fighter jets to India, a move that could significantly upgrade India’s air defence.
Strengthen Strategic Partnerships
The initiative will create robust supply chains and improve intelligence sharing to enhance operational readiness. This includes co-developing autonomous underwater systems through the Autonomous Systems Industry Alliance (ASIA).
The partnership complements multilateral frameworks like the Quad and I2U2, reinforcing regional security in the Indo-Pacific.
Economic and Industrial Benefits
The US and India aim to double bilateral trade to $500 billion by 2030, with a focus on high-tech commerce and defence industrial cooperation.
Indian investments in the US, such as Hindalco’s aluminium facilities and JSW’s steel operations, support over 3,000 US jobs.
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PRACTICE QUESTION Q. Critically analyze the strategic importance of critical minerals in Indo-US relations. How does the TRUST initiative address vulnerabilities in global supply chains dominated by China? 150 words |
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