Representative Image / iStock photo

A quiet transformation is underway in the global power structure—not driven by war or dominance, but by relevance. One truth is emerging more clearly than ever: the United States cannot afford to lose India. Not because India is dependent on the US, but because the US is becoming increasingly reliant on India— economically, strategically, and technologically. This is not about alliances or emotion. It is about necessity. 

Supply Chain Wake-Up Call 

In recent years, the global system experienced disruptions on an unprecedented scale. Factories halted, shipping lanes clogged, prices spiked—and the world realized a stark truth: it was dangerously dependent on one nation for almost everything. That nation wasn’t India—it was China. For decades, China was the go-to destination for manufacturing. Its advantages were clear: low costs, high speed, and massive scale. But the pandemic exposed a fatal flaw in this model. Global trade collapsed, ports shut down, and supply chains fractured. Companies, especially in the US, were forced to wait weeks or even months for basic components. In response, a strategic rethinking began. Businesses and governments started searching for alternatives. And that’s where India stepped in—quietly, but powerfully. 

India’s Advantage: Scale, Skill, and Stability 
India offers a unique combination: 
•        Scale – With over 1.4 billion people, it has an unmatched labor force and domestic market. 
•        Skill – India produces millions of engineers, coders, and designers, many already powering global tech firms. 
•        Stability – As the world’s largest democracy, India offers rule of law, strong institutions, and improving infrastructure. 

This shift was not sentimental—it was strategic. US tech giants like Apple, Google, and Tesla began relocating parts of their production to India. Apple now assembles a significant portion of its iPhones in India, with projections that one in four iPhones will be made there by 2025. India is now the world’s second-largest mobile phone manufacturer, just behind China. But it’s not just phones. India is expanding into semiconductors, electric vehicles, solar panels, pharmaceuticals, and aerospace components. What sets India apart? It isn’t just a cheaper option. It’s a trusted one.

New Front Line: Chips & Code 

The next global conflict won’t be fought with tanks and missiles—it will be fought with semiconductors and artificial intelligence. Whoever controls the chips controls the future. Semiconductors power everything from smartphones and servers to missiles and satellites. Today, most advanced chips are manufactured in Taiwan, South Korea, and Japan, with Taiwan producing over 60%. But Taiwan sits in a region of high geopolitical tension. A disruption there could paralyze the global tech economy. This has spurred the US to seek stable, scalable alternatives. And once again, India is emerging as a critical partner. India may not yet lead in chip fabrication, but it excels in design. Over 20% of the world’s semiconductor design engineers are of Indian origin. Chips used in iPhones, Teslas, and NVIDIA servers are designed in Bengaluru and Hyderabad. Global firms like Micron, AMD, and Applied Materials are investing billions in Indian semiconductor manufacturing—an indication of real, strategic trust. 

India offers: 
•        A vast pool of trained engineers 
•        A government actively supporting chip subsidies 
•        A neutral, safe environment for intellectual property 
The US-India Initiative on Critical and Emerging Technologies (ICET) is accelerating joint development in AI, quantum tech, defense systems, and semiconductors. This isn’t about aid—it’s about co-developing the future. 

India and Age of AI 

Artificial intelligence needs three things: chips, cloud infrastructure, and trained talent. India offers all three. India has one of the world’s largest pools of AI talent—second only to the US. It’s building sovereign AI models in Indian languages, and launching AI labs focused on healthcare, agriculture, and climate tech. This matters because the future of AI is not just about raw computing power—it’s about ethical, global cooperation. And India, unlike authoritarian regimes, builds its technology within a democratic framework that respects privacy, ethics, and human rights. 

The Strategic Value of Presence and Patience 
In a world increasingly shaped by maritime power and trade routes, India is asserting itself—not with noise, but with presence and patience. India has the 4th most powerful navy in the world, developing blue-water capabilities that allow it to project power beyond its region. It partners with Japan, Australia, France, and the US, but follows its own independent doctrine. More importantly, India enjoys horizontal trust—strong diplomatic ties with ASEAN, Africa, the Gulf states, and the West. India is seen as a bridge, not a bloc. In today’s polarized world, that kind of neutrality is invaluable. 

The US respects India not because it’s loud or aligned, but because it’s balanced—positioned at the center of global trade, diplomacy, and security. 

India’s Demographic Edge 

While much of the world ages, India is getting younger. By 2030, it will have the largest working-age population—over 900 million people under the age of 35. This is not just a demographic statistic—it’s a strategic advantage. In a world driven by innovation and scale, India is producing: 
•        Over 1 million engineers every year 
•        The second-largest number of STEM graduates (after China) 
•        Globally minded, locally rooted talent 

From Google and Microsoft to Adobe and IBM, Indian-origin leaders are shaping US tech. This is no coincidence—it’s a trend. US universities recruit Indian students. US companies invest in Indian R&D hubs. Programs like Skill India and Digital India are training millions more in AI, data science, and fintech. Innovation isn’t just about capital—it’s about people, trust, and vision. And India has all three. 

The Indian Diaspora: A Strategic Asset 
With over 4.4 million Indian Americans, the Indian diaspora is one of the most educated and influential immigrant communities in the US. They are scientists, entrepreneurs, lawmakers, and CEOs—shaping America from within. 

Civilizational Power, Modern Diplomacy 

India doesn’t follow the West or the East. It follows what works—for its people and for global stability. It maintains strong ties with the US while sustaining relationships with Russia, Iran, and China. It is a member of BRICS, a partner in the Quad, and a key voice in the Global South. Few countries can navigate such complexity and remain respected on all sides. 

A Partner of Trust in an Uncertain World 
According to Pew Research (2023), over 70% of Americans view India favorably higher than many traditional allies. India is also highly respected across Africa, the Middle East, and Southeast Asia—not because it dominates, but because it listens, mediates, and leads with values. During the Russia-Ukraine conflict, India didn’t pick sides—it called for peace. During the Israel-Palestine tensions, it sent medical aid to both. In global forums like G20 and BRICS, India pushes for digital inclusion, sustainability, and climate fairness. 

India isn’t just seen as a partner. Increasingly, it is viewed as a stabilizer. 

Power Behind the Power 

In a world shaped by semiconductors, artificial intelligence, and green technology, India is becoming the power behind the power. The US has many allies and partners—but none with India’s combination of scale, trust, neutrality, and talent. Losing India would not just mean losing a partner. It would mean losing the center of gravity in the most important region of the 21st century. 

In today’s uncertain world, that is not just a risk—it is a cost the United States cannot afford. 

The author is chair of Global Indian Trade and Cultural Council and President of Global Indian Diaspora Alliance.

(The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of India Abroad)