India and the United States are exploring deeper economic engagement in pivotal areas like semiconductors, nuclear energy, pharmaceuticals, and quantum computing, according to Union Finance and Corporate Affairs Minister Nirmala Sitharaman. While speaking at Stanford University, she underlined that shifting trade and investment trends offer a timely chance for both countries to build strategic partnerships and boost mutual investments.
Sitharaman emphasised that since 2019, there has been a significant rise in global trade barriers, with many nations implementing protectionist strategies to defend local employment and industries. In this context, she stressed the need to strike a balance between international trade and self-reliant growth. She highlighted that scaling up manufacturing is crucial—not just to fuel services growth but also to generate employment for India’s expanding youth population and to strengthen global supply chain participation.
The minister outlined the government’s ambitious goal of increasing manufacturing’s share in job creation from the current 12% to 23%, especially through investments in emerging sectors. Over the past ten years, India has significantly ramped up infrastructure spending to create a robust foundation for manufacturing-led growth. This is evident from a more than fourfold surge in capital expenditure by the central government between fiscal year 2018 and the projected budget for fiscal year 2026.
She also noted that India’s long-term economic momentum will rely on bold reforms, strengthened domestic capabilities, and adaptable policy frameworks. The last two Union Budgets, she said, have already laid down a multi-sectoral blueprint focused on innovation, investment, and institutional partnerships to power the next two decades of growth.
The minister concluded by underscoring that sectors like semiconductors and nuclear energy are not only vital for economic expansion but also key to reinforcing bilateral ties between India and the US in a rapidly shifting global landscape.
