NEW DELHI, June 28 — The private sector will serve as the primary engine for artificial intelligence cooperation between India and the United States, according to K Nagaraj Naidu, Additional Secretary in India’s Ministry of External Affairs. Speaking at an industry event, Naidu outlined the government’s view that corporate-led innovation, not state-driven programs, will define the pace and shape of the bilateral AI partnership.
The official did not specify a timeline or funding commitment, but the statement signals New Delhi’s preference for letting market forces drive technology collaboration rather than imposing top-down frameworks. India and the US have been deepening their technology ties over the past year, with AI emerging as a central pillar of the relationship.
The US administration under President Donald Trump has pushed for American companies to lead global AI standards, while India has positioned itself as a testing ground for scalable AI deployment given its large digital consumer base and growing startup ecosystem. Naidu’s remarks come as both countries explore joint research initiatives and data-sharing protocols. The private sector, he indicated, is better equipped to navigate the fast-moving nature of AI development than bureaucratic channels.
The MEA’s stance aligns with the broader Indian approach to technology governance, which has favored light-touch regulation and industry self-certification over prescriptive laws. This model has attracted major US technology firms to expand their AI research operations in Indian cities such as Bengaluru and Hyderabad.
Industry observers note that US-based cloud providers and chipmakers have already established substantial engineering teams in India focused on machine learning and natural language processing. The official’s comments suggest the government intends to accelerate this trend rather than redirect it through state-led programs. Naidu did not name specific companies or projects during his address.
However, the emphasis on private-sector leadership implies that future bilateral agreements on AI may take the form of industry consortia and voluntary standards rather than binding treaties. India’s technology ministry has separately been working on a national AI strategy that prioritizes applications in healthcare, agriculture, and education. The US-India track, according to Naidu, will complement these domestic efforts by bringing in American expertise in foundational models and computing infrastructure.
The timing of the statement is notable. Both countries are racing to establish AI governance norms ahead of broader international discussions expected later this year.
By anchoring the partnership in private-sector activity, New Delhi avoids the geopolitical complications that have slowed other technology agreements between major powers. What remains to be seen is how this private-sector-first approach will handle contentious issues such as cross-border data flows, intellectual property rights for AI-generated content, and export controls on advanced semiconductors. Naidu did not address these questions directly.
For now, the message from India’s foreign ministry is clear: when it comes to AI cooperation with Washington, let the companies lead, and let the government get out of the way.
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