Context: Recently The U.S. Senate passed a sweeping industrial policy Bill.
About the United States Innovation and Competition Act:
- It aimed at countering the surging economic threat from rival China.
- Overcoming partisan divisions to support pumping more than $170 billion into research and development.
- It is one of the most significant bipartisan achievements in Congress since Joe Biden’s presidency began in January.
- It also represents the largest investment in scientific research and technological innovation in generations.
- This act is to maintain America’s position as the most innovative and productive nation on Earth.
- The key provision of this act addresses a shortage of semiconductors in the form of financial assistance that has slowed U.S. auto production, and will help the U.S. industry bolster its capacity and improve technology.
Key areas addressed:
- The act addresses a number of technological areas in which the U.S. has fallen behind China.
- The Bill allocates $52 billion in funding for a previously approved plan to increase domestic manufacturing of semiconductors.
- It also authorises $120 billion over five years for activities at the National Science Foundation to advance priorities, including:
- Research and development in key areas such as artificial intelligence and quantum science.
- It facilitates tie-ups between private firms and research universities.
- It would create broad new mandatory sanctions on Chinese entities engaged in US Cyberattacks.
- It would authorize NASA spending and its Artemis mission to the moon to counter the Chinese Mars mission.
Impact of the bill on India:
- India could increase its trade footprint through Quad.
- India could help in providing human resources in the development and manufacturing process of various technological components.
- India is the hub for affordable software development, which can be helpful in many 21st-century Information and Communication technologies.
- It would increase competition and will create a new platform to show India’s IT power at the international level.
- Through FDI India can bring many US companies who want to do manufacturing and productions at a low cost, which will increase employment in the country.
Source: The Hindu, The Indian Express