India EU sign semiconductor pact

India EU sign semiconductor pact

Subject : IR

Section: Groupings

Context: India EU sign semiconductor pact

More about the news:

• India and the European Union (EU) have signed a Memorandum of Understanding (MoU) to enhance cooperation in the semiconductor ecosystem.
• This agreement aims to facilitate investments, joint ventures, and technology partnerships, including the establishment of manufacturing facilities.
• The signing took place during the second India-EU Trade and Technology Council (TTC) meeting, held virtually.
• This move aligns with India’s strategy to offer incentives amounting to $10 billion for chip manufacturing within the country.
• The TTC meeting also assessed the progress in various areas such as high-performance computing, digital public infrastructure, electric vehicle batteries, waste recycling, resilient supply chains, and foreign direct investment (FDI) screening.
• Co-chaired by Indian External Affairs Minister S Jaishankar, Minister of Commerce and Industry Piyush Goyal, and Minister of Electronics and Information Technology Ashwini Vaishnaw, this meeting strengthens the strategic engagement on trade and technology between India and the EU.
• The TTC mechanism was established in May, making India the second country, after the US, to have such a mechanism with the EU.

What is India-EU Trade and Technology Council (TTC):

• The establishment of the TTC was announced in 2022 by the Indian Prime Minister and the President of the European Commission.
• Its primary goal is to create a high-level coordination platform addressing strategic challenges at the intersection of trade, trusted technology, and security.
• Ministerial meetings under the TTC  occur annually, ensuring regular high-level engagement between India and the EU.
• These meetings occurr, to promote balanced participation and enhance bilateral cooperation.
• Under TTC three Working Groups has been established:
• WG on Strategic Technologies, Digital Governance, and Digital Connectivity:
  • Collaboratively addresses mutual interests such as digital connectivity, Artificial Intelligence, 5G/6G, high-performance and Quantum Computing, Semiconductors, cloud systems, Cybersecurity, digital skills, and digital platforms.
• WG on Green and Clean Energy Technologies:
  • Focuses on green technologies, including investment and standards, with an emphasis on research and innovation.
  • Explores areas like clean energy, Circular Economy, waste management, plastic and ocean litter, waste to hydrogen, and recycling of batteries for e-vehicles.
  • Promotes cooperation between EU and Indian incubators, SMEs, and start-ups.
• WG on Trade, Investment, and Resilient Value Chains:
  • Addresses the resilience of supply chains and access to critical components, energy, and raw materials.
  • Works on resolving identified trade barriers and global trade challenges through cooperation in multilateral forums.
  • Aims to promote international standards and cooperation in addressing global geopolitical challenges.