India-US trade deal opens path for greater GPU access and data centre cooperation

The joint statement was released on February 7

• US and India to boost trade in GPUs and data centre equipment
• India plans to buy $500 billion in US goods over five years
• Focus on GPUs supports India's AI and data centre growth

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The interim trade framework announced by the United States and India places technology cooperation — particularly in Graphics Processing Units (GPUs) and data centre equipment — at the centre of the two countries’ partnership.

In a joint statement, released on February 7, the two governments said they will "significantly increase trade in technology products, including Graphics Processing Units (GPUs) and other goods used in data centers, and expand joint technology cooperation."

India has also indicated that it intends to purchase $500 billion worth of U.S. goods over the next five years, including products spanning sectors such as energy, aircraft and aircraft parts, precious metals and technology products.

The focus on GPUs is particularly significant for India’s growing artificial intelligence and data centre ambitions.

India's Rs 10,000 crore IndiaAI Mission subsidises GPU access for startups and researchers developing AI models. Currently over 30,000 GPUs have been allocated.

The renewed emphasis on GPU trade also reflects a shift from the approach taken under the previous US administration.

During President Joe Biden’s term, Washington introduced a series of export controls aimed at restricting the flow of advanced AI chips to certain countries as part of a broader national security strategy.

These controls were closely tied to the CHIPS and Science Act, which sought to boost US' domestic semiconductor manufacturing.

Although those measures were primarily designed to curb China’s access to advanced compute, they also introduced additional licensing and compliance layers for other countries.

Indian industry leaders had cautioned that prolonged ambiguity over GPU supply could slow data centre expansion and AI research.

Apart from this the statement also talks about broadening digital trade goals.

The statement commits both countries to "significantly increase trade in technology products" and to work towards more ambitious and mutually beneficial digital trade rules under the proposed BTA.