Introduction:

The 21st century is witnessing the rise of a new techno-capitalist world order, where technology and capital converge as key instruments of power. Unlike the earlier developmental model, where states regulated and directed technology for social progress, the current shift—most prominently driven by the United States—places the state as an enabler of private technological monopolies. This transformation has significant implications for global geopolitics, economic security, and India’s technological future.

Understanding Techno-Capitalism

Techno-capitalism refers to a system in which technological innovation and financial capital are co-architects of state power. Its features include:

• Deregulation of critical sectors like AI and fintech.
• Public–private partnerships driving massive investment flows.
• A “tech-broliarchy” of Silicon Valley elites collaborating with state institutions.
• Technology as a geopolitical tool rather than a developmental ideal.

For example, the Trump administration’s AI policy dismantled regulatory barriers, channelled billions into AI-driven manufacturing, and prioritised strategic dominance over global governance norms.

Global Shifts in Tech Ecosystems

United States

The US has transitioned from state-led scientific advancement (e.g., NASA in the 20th century) to private sector-led innovation (e.g., SpaceX, Google DeepMind). Techno-capitalism is now a deliberate strategy blending libertarian individualism with techno-nationalism, reinforcing American primacy in AI, fintech, and crypto.

China

China follows a mission-driven, centralised model, where the state directly steers technological innovation. Its focus areas include AI, digital surveillance, space technology, and the Digital Silk Road. Unlike the US, China treats technology as both a governance tool and an export of state power.

India

India represents a hybrid model, with strong digital public goods (UPI, Aadhaar) and an expanding space programme, but faces systemic challenges:

• Low R&D investment (<0.7% of GDP vs. US 3.5% and China 2.4%).
• Weak linkages between universities and industry.
• Regulatory uncertainty in AI, data, and fintech.
• Limited scaling capacity for start-ups.

India–US Technology Cooperation

Historically, India–US scientific collaboration oscillated between optimism and distrust. The SITE project (1975) reflected Cold War-era cooperation, but the 1974 nuclear test created a trust deficit. Recently, the Initiative on Critical and Emerging Technologies (iCET) has revived ties, though divergences on trade, Russia, and US techno-nationalism pose challenges.

Challenges for India in the Techno-Capitalist Era

1. AI-driven job displacement in IT-BPO sectors.
2. Visa uncertainties in the US affecting skilled migration.
3. Underinvestment in R&D, limiting innovation.
4. Fragmented regulation, with gaps in AI ethics, crypto, and data governance.
5. Start-up ecosystem constraints, including capital shortages and limited government procurement support.

Way Forward for India

• National Tech-Industrial Strategy integrating defence, space, semiconductors, AI, and quantum computing.
• Higher education reform to link universities with mission-mode projects and innovation clusters.
• Balanced regulation that encourages innovation while ensuring consumer rights and systemic safeguards.
• Strategic engagement with the US for co-innovation, while maintaining technological sovereignty.
• Human capital reskilling through a National AI Reskilling Mission and integration of emerging technologies in curricula.