An interim trade framework between India and the United States places graphics processing units (GPUs) and data centre equipment at the heart of future technology cooperation, signalling a major boost for India’s artificial intelligence and cloud infrastructure ambitions.
Under the agreement, India has indicated plans to purchase US$500 billion worth of American goods over the next five years, which translates to around ₹41.5 lakh crore. These purchases will span energy, aircraft and aircraft parts, precious metals, and high-end technology products, including advanced computing hardware.
A key highlight is the commitment by both governments to significantly increase trade in GPUs and data-centre-related equipment, an area that has been constrained in recent years due to US export controls on advanced AI chips. The renewed emphasis suggests smoother access for Indian firms to critical compute hardware needed for AI model training, cloud services and large-scale data centres.
The deal also aligns closely with India’s domestic push under the IndiaAI Mission, which carries an outlay of ₹10,000 crore to subsidise GPU access for startups, researchers and academic institutions. So far, over 30,000 GPUs have been allocated under the programme to support indigenous AI development.
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Industry watchers say improved GPU access could significantly reduce costs for Indian data centre operators and AI startups, many of whom currently rely on expensive overseas cloud compute. With demand for AI services rising sharply, easier imports of GPUs are expected to accelerate investments in hyperscale and edge data centres across the country.
The joint statement also commits both sides to expanding digital trade cooperation and working towards more ambitious and mutually beneficial rules under a proposed bilateral trade agreement (BTA), covering technology products and digital services.
Importantly, the framework marks a shift from the tighter approach seen earlier, when US export controls — linked to domestic semiconductor policies — created uncertainty for non-restricted countries as well. Indian industry groups had repeatedly warned that prolonged ambiguity over GPU supplies could slow AI research and data-centre expansion.
Overall, the agreement is being seen as a strategic win for India’s AI ecosystem, with large rupee-denominated trade flows and policy support converging to strengthen the country’s position as a global data and compute hub.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
