As Washington pushes a new tech and supply-chain alliance, India weighs the promise of secure semiconductors against strategic autonomy and the risks of changing ties with China and Europe.
New Delhi: India has received an invitation from the United States to join the Pax Silica , a strategic alliance focussed on advancing artificial intelligence and securing supply chains for rare earth elements and critical minerals.
It has prompted a policy review within the government. The proposal focusses on strengthening global supply chains linked to critical minerals and semiconductors, two sectors that form the backbone of modern manufacturing, digital infrastructure and advanced technologies.Pax Silica seeks to ensure stable and reliable access to raw materials and semiconductor components. The initiative is aimed at reducing disruptions in industries dependent on electronics, energy systems and high-end computing. India has not so far taken a decision and is examining the proposal before committing to the arrangement.An ET report indicates that New Delhi recognises the strategic value of being part of this emerging arrangement. At the same time, policymakers are cautious about preserving domestic policy space. Sectors such as artificial intelligence require regulatory flexibility, and there is concern that participation in a structured international framework could limit India’s ability to chart its own course in important technology areas.Supply chain security stands out as the central attraction of Pax Silica. Reliable access to critical minerals and semiconductors is essential for industrial growth. Disruptions in these supply lines can have lasting economic consequences. The initiative proposes coordination across sourcing, manufacturing, packaging, logistics and transportation to ensure continuity.Pax Silica also offers India an avenue to reduce its dependence on China for semiconductor supplies. Member countries have committed to cooperation across the entire chip ecosystem, with an emphasis on trusted networks and shared standards. The objective is to prevent the misuse of sensitive technologies and protect critical infrastructure.India presently imports close to 30% of its semiconductor requirements from China, and participation in the initiative could help diversify this dependence.At the same time, New Delhi is mindful of regional realities. China continues to play an important role in global trade and manufacturing. Abrupt disengagement carries economic and strategic risks. Discussions between India and the United States on Pax Silica is yet to begin. Internal consultations are still underway. Officials have also said that India entered the conversation later than several other countries.The Pax Silica declaration was signed on December 12 last year by countries, including Japan, Singapore, South Korea, the United Kingdom, Australia, Israel and Greece. The Netherlands, the United Arab Emirates and Qatar joined subsequently. India received its invitation only in mid-January, a move confirmed by US Ambassador Sergio Gor ahead of his visit to the country.Several influential players are outside the framework. Taiwan has not issued any statement on joining. The European Union attended the first summit but maintained a limited role, showing its independent industrial and technology policies.India is also factoring in parallel diplomatic and economic engagements. Negotiations with the EU on a free trade agreement have reached an advanced stage, with a major announcement expected soon. Planned cooperation between India and the EU’s 27 member states across multiple sectors adds another layer to the decision-making process.For India, uninterrupted access to critical minerals and semiconductors is a strategic necessity. Equally important is the preservation of policy autonomy. Any international partnership must balance economic opportunity with national interest. Pax Silica presents potential benefits, along with complex choices that require careful evaluation.
US Tech Alliance India India Semiconductor Policy China Chip Supply India Critical Minerals Supply Chain India Strategic Autonomy Pax Silica India-US Relations Semiconductor Supply Chain China Technology Strategy
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