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India-US Trade Framework To Accelerate India’s Semiconductor, Data Centre Push: Pan IIT Alumni India
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Pan IIT Alumni India says the framework signals deeper cooperation in critical and emerging technologies at a time when India is expanding its manufacturing base and digital infra.
This framework strengthens India’s position as a trusted manufacturing and innovation partner under the evolving China+1 strategy, the chairman of Pan IIT Alumni India said.
The interim India-US trade framework could significantly speed up India’s ambitions in semiconductors, data centres and advanced technology manufacturing, Pan IIT Alumni India has said. It added that the Union Budget 2026-27 has provided complementary domestic support to leverage the agreement.
Welcoming the joint statement issued by New Delhi and Washington, Pan IIT Alumni India said the framework signals deeper cooperation in critical and emerging technologies at a time when India is expanding its manufacturing base and digital infrastructure.
“The trade framework and the Union Budget together reflect a clear strategic alignment. India is building domestic capacity while expanding global technology partnerships,” said Prabhat Kumar, chairman of Pan IIT Alumni India.
The alumni body said improved access to advanced components and technologies comes at a crucial moment as India pushes semiconductor fabrication, packaging and design through production-linked incentive schemes and related manufacturing programmes.
“Today, everything runs on chips — from data centres and telecom networks to electric vehicles and defence systems. Stronger engagement with the US can help India move faster from design to manufacturing and packaging, while reducing supply chain risks,” Kumar said.
Pan IIT Alumni India noted that the Union Budget has reinforced the domestic ecosystem by continuing support for semiconductor manufacturing and accelerating digital infrastructure expansion. It pointed in particular to the proposed tax holiday until 2047 for foreign cloud service providers using Indian data centre infrastructure, a move aimed at attracting long-term global investment.
According to the alumni body, the trade framework improves access to advanced technology and markets, while the Budget strengthens India’s internal capabilities, together creating momentum for sustained growth in advanced manufacturing and digital infrastructure.
It added that startups and MSMEs stand to benefit from smoother cross-border collaboration, improved access to capital and deeper integration into global value chains. India’s large base of IIT alumni working across US technology companies, research institutions and venture funds could play a key role in facilitating partnerships, mentoring and market access.
“From electronics and EV components to defence and aerospace, reliability matters. This framework strengthens India’s position as a trusted manufacturing and innovation partner under the evolving China+1 strategy,” Kumar said.
Pan IIT Alumni India said its global network is well placed to translate the policy momentum into tangible outcomes by facilitating connections between industry, academia and policymakers, and by supporting technology partnerships and cross-border investments.
February 08, 2026, 14:49 IST
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