India on Friday signed on to the US-led Pax Silica alliance, formalising its entry into an initiative focused on building resilient supply chains for critical minerals and artificial intelligence. The declaration was signed on the sidelines of the AI Impact Summit in the presence of Union Minister Ashwini Vaishnaw, US Under Secretary of State for Economic Affairs Jacob Helberg and US Ambassador to India Sergio Gor.
The move comes as India and the US seek to advance a proposed trade deal and stabilise broader ties after a period of strain. Launched in December, Pax Silica aims to create a secure and innovation-driven ecosystem for critical minerals and AI technologies.
Widely seen as an important strategic move for India because it directly addresses some of the biggest challenges and opportunities facing the country’s technological and economic future, the decision to join the US-led alliance is primarily aimed at building secure, trusted supply chains for resources and technologies of the 21st century. These include critical minerals and silicon (the basic material for chips) to semiconductor manufacturing and artificial intelligence infrastructure. The name itself reflects this shift: in the era of silicon and AI, control over these supply chains is as consequential as control over oil once was.
For India, participation in Pax Silica helps reduce the country’s historical over-dependence on China for critical minerals and rare earths, which are essential not only for semiconductors but for defence systems, renewable energy technologies and advanced electronics. China dominates both the processing and export of many of these inputs, leaving countries without diversified partners vulnerable to supply disruptions or political pressure. By being part of a coalition that prioritises supply-chain resilience among trusted democracies, India gains a hedge against such risks and strengthened access to the raw materials needed to underpin its own industrial ambitions.
Building domestic semiconductor and AI ecosystem
India’s inclusion in Pax Silica also dovetails with its long-term plans to build a domestic semiconductor and AI ecosystem. The country has launched ambitious missions to promote chip design, fabrication and AI research, and has attracted investments in semiconductor fabs and design projects.
Being part of an international framework focused on secure technology supply chains helps attract deeper foreign investment, technology collaborations and joint research partnerships. It enhances credibility for global firms considering sinking capital into India’s technology infrastructure because it signals alignment with like-minded industrial powers and a predictable strategic environment.
Geopolitical significance
According to a former diplomat, Pax Silica carries significant geopolitical weight for member countries. “It aligns India more closely with major technology powers such as the US, Japan, South Korea and European partners, expanding its role in setting standards for secure supply chains and emerging technologies,” he said, speaking on condition of anonymity as he has not yet studied the partnership in detail.
In any scenario, he added, the move reflects India’s growing stature in global technology governance at a time when control over advanced chips and AI capabilities is increasingly linked to national security and economic influence. Interoperability with trusted partners also supports India’s broader objective of maintaining strategic autonomy while participating in coalitions that reduce dependence on any single global player.
Skill development and job creation
Finally, joining Pax Silica could help accelerate domestic skill development and job creation. By linking India’s large pool of engineers and technology professionals with international research and manufacturing ecosystems, the initiative may foster higher-end capabilities within the country rather than exporting talent overseas. This has the potential to boost India’s human capital advantage, making the country a more central node in the global tech value chain rather than just a consumer or services provider.
While it reflects a recognition that future prosperity and security will be shaped by leadership in advanced technology supply chains, India’s participation in the alliance also bolsters supply-chain resilience, enhances investment prospects, strengthens strategic partnerships and positions the country as an influential player in the global technology landscape.