The escalating technology rivalry between the United States and China is reshaping global power dynamics - and India finds itself at a crossroads. While both superpowers vie for dominance in artificial intelligence, semiconductors, and emerging tech, India is pursuing a strategy that combines self-reliance, strategic partnerships, and regulatory caution.

India’s “Digital Swaraj Mission,” proposed by the Global Trade Research Initiative, calls for indigenous cloud infrastructure, operating systems, cybersecurity, and AI tools to reduce dependence on U.S. tech and safeguard national security. At the same time, India is part of bilateral collaborations such as the US-India Initiative on Critical and Emerging Technologies (iCET) that align efforts with the U.S. in quantum computing, semiconductors, and other frontier domains. 

Economically, Indian firms are under pressure: proposed U.S. legislation like the HIRE Act 2025 threatens the outsourcing model, imposing taxes on payments to foreign workers servicing U.S. clients. Apple’s move to shift iPhone production for U.S. markets from China to India underscores a larger supply-chain realignment driven by geopolitical risk. 

Analysts warn India has a narrow path ahead. Boosting domestic R&D, speeding regulatory clarity, and maintaining balanced diplomacy will be crucial if India wants to emerge not just as a partner, but a significant player in the global tech race.