India, US must cooperate in climate change, semiconductors: Gautam Adani

India and the United States should increase cooperation in climate change, semiconductor production, defence and cyber space, said Gautam Adani, chairman of the Adani Group, on Wednesday.

Adani, who received the USIBC Global Leadership Award in Mumbai, said the partnership between India and the United States—the two largest democracies—will be one of the most defining relationships of the century.

“A central element of the India-US relationship will need to be mutual acceptance–that free trade, openness, and integration into each other’s economies are needed to set the foundation for the range of possibilities that remain unexploited,” Adani said in his acceptance speech.

There has been talk about developed nations supporting developing ones but more has to be done, especially to protect the environment. “Cooling the planet down—equitably–is necessary and can be one of the most profitable businesses over the next several decades. With the signing of the US climate bill into law, both our nations must find a mechanism to benefit from this massive stimulus. The governments have done their part, it’s now the job of the businesses to find a way to collaborate,” Adani said, adding that his group has committed $70 billion in environment-friendly projects.

“This will see us building three giga factories in India, leading to one of the world’s most integrated green-energy value chains. This will extend from polysilicon to solar modules, complete manufacturing of Wind Turbines, and the manufacturing of Hydrogen Electrolyzers. As a result, we will generate an additional 45 GW of renewable energy to add to our existing 20 GW capacity, as well as 3 million tons of Hydrogen–all of which will be completed before 2030. This value chain will be fully indigenous and aligned with the geopolitical needs of our nation.

“However, I believe we can further accelerate our goals with support from companies in the US that are willing to work with us. Both of us stand to benefit.”

Adani said the war in Ukraine has accelerated India’s need to make semiconductors indigenously. “The paradox of capitalism is that India continues to be the best global pool for millions of engineers, especially for US companies, but the primary value addition to the businesses happens outside India. The semiconductor Industry is a classic example with more engineers deployed in India than anywhere else in the world, and yet, India has no semiconductor plant,” he said.

“‘India cannot remain dependent on global supply chains that are based on semiconductor nationalism and will need US support with technology transfer.”

Regarding healthcare, Adani said national priorities took over during the Covid-19 pandemic and the availability of vaccines became a game of votes and capitalism. “The term deglobalization gained prominence because of the divisions that came about as a result of the pandemic. We must never allow this to happen again, given the mistrust it creates,” he said. Vaccine collaboration between our nations must be high on our priority list and needs to be formalized in a mutually beneficial way, Adani said

.

Urging the USIBC to facilitate a broader platform that brings together corporate executives on both sides on a regular basis, Adani said there would be a lot of when US and Indian economies converge.

“The outcome from these forums would be multiple. It would lay the foundation for a broader business development platform, continuously highlight the policy challenges that must be addressed, as well as get the businesses and policymakers on a common platform,” he said.