India and the United States are working together to secure $1 billion from the International Bank for Reconstruction and Development (IBRD) to fuel a joint initiative between the two nations. The funding will be invested towards scaling up the manufacturing of clean energy components and building a secure, resilient global supply chain for renewable energy technologies. This was one of the key outcomes of bilateral talks between Indian Prime
Minister Narendra Modi and U.S. President Joe Biden, held on the sidelines of the Quad Summit, according to a statement from the White House.
The $1 billion funding from the IBRD is poised to significantly enhance India’s manufacturing capacity in clean energy sectors, positioning it as a key player in the global supply chain for technologies critical to combating climate change. The planned expansion will focus on solar and wind energy components, battery storage systems, advanced energy grid technologies, and highly efficient air conditioners and ceiling fans.
The clean energy transition is central to both nations’ broader strategic and economic goals. “The United States and India share an enduring commitment to deepen our collaboration on issues of shared national and economic security,” said the White House, emphasizing the importance of this partnership in a broader geopolitical context.
The joint initiative will not only boost manufacturing capabilities within India but also enhance the global supply chain for clean energy technologies. With a focus on both countries’ complementary strengths in technology, innovation, and manufacturing, the partnership aims to lower the cost of clean energy technologies, making them more accessible globally. This move comes at a time when clean energy supply chains are increasingly becoming a matter of national security, particularly as countries strive to reduce their dependence on fossil fuels and transition to renewable energy.
The White House underscored the importance of this bilateral cooperation, noting that it will focus on solar, wind, and battery technologies and also expand into grid systems—crucial for managing renewable energy. Additionally, the project will contribute to developing more energy-efficient solutions, particularly in sectors like cooling, where India’s growing demand for air conditioners and ceiling fans makes it a critical market for
innovation.
Significantly, both nations also plan to extend their partnership beyond bilateral efforts, with a proposed trilateral collaboration involving Africa. This initiative aims to focus on expanding solar energy infrastructure and battery storage capabilities across the continent. Africa’s vast solar potential, coupled with a growing energy demand, makes it an ideal partner in the global transition to clean energy.
As developing countries seek sustainable energy solutions, India and the U.S. hope to provide a model for cooperation, combining their technical expertise, manufacturing prowess, and financial support. According to the White House, the roadmap for this collaboration will serve as an initial mechanism for driving short-term cooperation, with an eye toward long-term partnerships and investments.
Beyond the immediate financial and technological objectives, the talks between Modi and Biden – held at President Biden’s residence in Delaware – highlighted the broader commitment both countries share in tackling regional and global issues through collaboration. As two of the world’s largest democracies and major economies, the U.S. and India see clean energy as a cornerstone of their economic and strategic relations. The White House reiterated, “The United States and India intend to elevate and expand bilateral technical, financial, and policy support to expand complementary U.S. and Indian manufacturing capacity for clean energy technologies and components.”
By bringing together governments, private organizations, and industry leaders, both nations are committed to identifying investment opportunities across various segments of clean energy. This partnership signals a strong alignment of interests, especially in light of the global need to address climate change and the energy transition.
The clean energy partnership between the U.S. and India is a key outcome of this strategic dialogue, serving not only the interests of both nations but also the broader global community. As the world moves toward a more sustainable and resilient future, partnerships like this one are essential for driving innovation, lowering costs, and ensuring that clean energy technologies reach the countries that need them most.
