New Delhi, Delhi, 7th of February, 2026 : Pan IIT Alumni India on Saturday said the India-United States interim trade framework could significantly accelerate India’s ambitions in semiconductors, data centres and advanced technology manufacturing, with the Union Budget providing complementary domestic support.
Welcoming the joint statement issued by the two countries, it said the framework signals deeper cooperation in critical and emerging technologies at a time when India is expanding its manufacturing and digital infrastructure base.
“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, Pan IIT Alumni India.
According to the IITians alumni body, expanded access to such high-end components comes at a crucial time as India pushes semiconductor fabrication, packaging and design under its manufacturing incentive programmes.
“Today, everything runs on chips — from data centres and telecom networks to electric vehicles and defence systems. Stronger engagement with the U.S. can help India move faster from design to manufacturing and packaging, while reducing supply chain risks,” Kumar said.
It further said the Union Budget strengthens the domestic ecosystem through continued support for semiconductor manufacturing and 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 investments.
“The trade framework improves access to advanced technology and markets, while the Budget builds the domestic foundation. Together, they create momentum for sustained growth in advanced manufacturing and digital infrastructure,” Kumar added.
Pan IIT Alumni India said startups and MSMEs stand to benefit from smoother cross-border collaboration, improved access to capital and integration into global value chains. It noted that India’s large base of IIT alumni working across U.S. technology firms and venture funds could help facilitate partnerships 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 emphasized that its global network is uniquely positioned to translate this momentum into tangible outcomes by facilitating connections between industry, academia, and policymakers through mentoring, technology partnerships, and cross-border investments.
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