With Pax Silica and AI Opportunity Partnership, India-US place tech front and centre

As emerging technologies assume a central role in powering the global economy, securing critical mineral supplies and strengthening advanced manufacturing capabilities are urgent national priorities. Pax Silica, a US-led initiative, seeks to loosen China’s stranglehold over critical minerals, particularly rare earth elements, which are essential to a wide range of industries. Although India was initially excluded when the first group of countries signed up last year in mid-December, New Delhi signed the Pax Silica declaration on the sidelines of the AI Impact Summit on February 20. In doing so, India formally entered an alliance of nations seeking to reduce what the Pax Silica factsheet refers to as “coercive dependencies” in supply chains.

Coming on the heels of a framework for a trade agreement with the US, this marks a big step forward for Delhi-Washington ties. It is accompanied by investment commitments by the US in India’s AI infrastructure. According to the International Energy Agency, China accounts for an average market share of around 70 per cent in the refining of 19 of the 20 most strategic critical minerals, and 94 per cent of the production of rare-earth-containing permanent magnets. Beijing’s grip allows it not only to influence global prices and create bottlenecks for competitors, but also to deploy them as leverage in negotiations. Pax Silica’s aim, therefore, is to reduce the vulnerabilities of its member states. The coalition could also give a boost to domestic programmes such as IndiaAI and the National Critical Mineral Mission.

Alongside, India and the US signed the AI Opportunity Partnership, which will facilitate capital flows and deepen R&D collaboration, marking a renewal of cooperation with technology at its centre. The US-India relationship rests on strong foundations. It was only logical that, once the turbulence of the Trump tariffs receded, the underlying imperatives of security, technology, energy and the shared objective of addressing China’s challenge would reassert themselves. Both sides recognise the perils of not working together. As the AI Partnership’s joint statement says: “The two sides share the belief that a significant risk facing the free world is not the advancement of AI, but the failure to lead it.” New Delhi should, however, be cautious about protecting its still-maturing semiconductor and AI ecosystems, and ensure that the US role does not shape domestic rules in ways that stifle capacity and participation within the country.