Why in news?

India’s belated induction into US-led initiatives like Minerals Security Partnership and Pax Silica has evoked a sense of déjà vu among policymakers. As with MSP—where India joined a year after launch—its entry into Pax Silica came after the initiative was already underway, seen largely as a conciliatory gesture amid efforts to steady bilateral ties.

The significance lies in what these groupings signal about the emerging global tech order, especially as countries reorganise supply chains in strategic sectors with Chinese presence.

Platforms like Pax Silica could shape rules by addressing chokepoints in inputs such as magnets and critical minerals—effectively determining where leverage will sit.

India’s initial exclusion, followed by a late inclusion, carries a subtle message: strategic goodwill alone may not suffice. To be a partner of first choice in US-led initiatives, India must be seen as bringing tangible capabilities and value to the table in shaping resilient, rules-setting supply chains.

What’s in Today’s Article?

• About Pax Silica
• Why India Was Initially Excluded from Pax Silica?
• Shared Challenge: China’s Critical Minerals Dominance

About Pax Silica

• Pax Silica is a US-led strategic initiative aimed at countering China’s dominance in next-generation technologies.
• It seeks to reduce “coercive dependencies” and protect materials and capabilities foundational to artificial intelligence, enabling aligned nations to develop and deploy transformative technologies at scale.
• Objectives and Scope
  • According to the US State Department, Pax Silica is designed to build a secure, prosperous, and innovation-driven silicon supply chain.
  • It aims to ensure access across the entire AI stack—from critical minerals and semiconductor chips to security and logistics infrastructure.
• Key Thrust Areas Under Pax Silica
  • Under Pax Silica, participating countries aim to:
    • Pursue joint ventures and strategic co-investments
    • Protect sensitive technologies and critical infrastructure from undue foreign control
    • Build trusted technology ecosystems spanning ICT systems, fibre-optic cables, data centres, foundational AI models, and applications
• Founding Members and Their Strengths
  • The inaugural Pax Silica Summit brought together Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia.
  • These countries collectively host key companies and investors that power the global AI and semiconductor supply chain, reflecting their technological or resource-based leverage.

Why India Was Initially Excluded from Pax Silica?

• Pax Silica aims to secure supply chains spanning critical minerals, energy inputs, advanced manufacturing, and semiconductors.
• India’s initial absence reflects perceptions that it lacks decisive edge technologies or control over key resources central to the grouping’s objectives.
• What the Selected Countries Bring?
  • Each of the eight founding members offers a distinct strategic advantage:
    • The Netherlands controls specialised lithography machines vital for chipmaking.
    • Japan and South Korea bring deep technology and manufacturing expertise.
    • Australia contributes critical mineral reserves and mining capabilities.
    • Israel is a global innovation and technology hub.
    • Singapore serves as a major tran-shipment and logistics hub.
    • The UK offers strengths in services and technology.
    • The UAE has rapidly built AI capabilities and supporting infrastructure.
• A Familiar Pattern from MSP
• A similar logic shaped the initial membership of the Minerals Security Partnership, where early partners included countries with clear mineral, technology, or institutional advantages.
• India joined later, despite its efforts to position itself as a node in global supply-chain realignment as firms diversify away from China.
• The Takeaway for India
  • The common thread among the founding members is a tangible lead in AI or semiconductor supply chains—an area where India currently lacks comparable processing capacity and expertise.
  • As with earlier initiatives such as the MSP, this gap explains India’s absence at the outset.
  • The exclusion underscores a consistent message: entry into US-led strategic groupings hinges on demonstrable capabilities and leverage—not just intent.
  • To be a first-choice partner, India must strengthen its control over critical inputs, technologies, or platforms that shape supply-chain rules.

Shared Challenge: China’s Critical Minerals Dominance

• Experts point out that China’s dominance in critical minerals has created sharp global price gaps, disadvantaging non-Chinese supply chains.
• While this opens space for India to attract US investment, it also raises risks of Chinese coercion as India deepens alignment with Washington.
• US Treasury Secretary Scott Bessent framed China’s export controls as “China versus the rest of the world,” calling for support from Europe, India, and Asian democracies.
• Despite this rhetoric and shared concerns, India remained outside Pax Silica’s initial list, underscoring a gap between strategic alignment and perceived capabilities.