US-India AI Pact to Counter China, Shape Global Tech Order

The report U.S.-India AI and Emerging Technology Compact, prepared jointly by the Special Competitive Studies Project (SCSP) and Observer Research Foundation (ORF) America, argues that leadership in AI will determine not only economic growth but also national security and the values that govern the digital era.

"I think both countries are really built for this moment," SCSP President Ylli Bajraktari told IANS in an interview, describing the partnership as a "symmetry of strength." He said the United States brings "frontier hyperscale models, frontier R&D, advanced semiconductors," while India contributes "an enormous STEM talent at scale, massive data centres, and a really proven ability to deploy technology at the population level."

The report stresses that the partnership should not be hierarchical.

"The idea is not for India to be a junior partner to the United States, but to combine our strengths and address our gaps," said Rama Elluru, senior adviser at SCSP and a co-author of the report.

"It's meant to be complementary, not create a dependency."

At the core of the recommendations is a push to move beyond research and focus on real-world applications.

The report proposes launching a public-private U.S.-India AI Coalition to prioritise commercial and dual-use applications in sectors such as healthcare, energy, and maritime domain awareness, and to integrate AI cooperation into existing defence dialogues and joint military exercises.

Infrastructure and semiconductors form another key pillar. The report calls for developing a binational "AI stack" spanning data centres, cloud services, connectivity, and hardware, which could be exported to the Global South as a trusted alternative to adversarial technology ecosystems.

It also recommends aligning U.S. and Indian semiconductor incentives and creating financing mechanisms to accelerate AI infrastructure projects.

Talent development and standards-setting are also highlighted. Elluru said India's advantages lie in "enormous quantity as well as quality" of AI talent and data.

"Their data sets are very unique in that they're not only large, but they're very diverse," she said, adding that India's ability to deploy technology at a population scale is a major asset.

The report recommends joint labour-market mapping and standardised certification to allow seamless talent flows between the two countries.

A central strategic rationale of the compact is competition with China. Bajraktari warned that Beijing's top-down system allows rapid execution once a national strategy is set.

"The United States alone cannot compete against China. That's why we have allies. That's why we have partners," he said.

Elluru added that closer U.S.-India coordination would help keep authoritarian platforms out of emerging markets and give India agenda-setting power, not just market access.

Bajraktari said the summit's focus on "AI impact for good" aligns closely with the report's emphasis on applications that boost productivity and societal welfare.

Elluru said the Delhi summit is expected to be the largest of the global AI summits so far, with a strong emphasis on inclusivity and real-world outcomes.

On regulation, Elluru said both countries share a similar approach. "Both sides want to let innovation flourish and see what safeguards we need instead of the other way around," she said.

The report was developed through Track 1.5 dialogues held in Washington and New Delhi involving more than 120 experts from government, industry, academia, and civil society, and is intended to inform bilateral engagements and discussions at the February 2026 AI Impact Summit in India.

- IANS