India and the US have been at odds over tariffs and commerce deal negotiations. Amid this, the continued tussle for vital minerals has additionally opened a number of fronts the place the world powers are competing for a slice of the sources, largely managed by China. Final week, the US introduced the formation of Pax Silic – a US-led strategic initiative to construct a safe, affluent, and innovation pushed silicon provide chain—from vital minerals and power inputs to superior manufacturing, semiconductors, AI infrastructure, and logistics. Pax Silica seeks to ascertain a sturdy financial order that underwrites an AI-driven period of prosperity throughout associate international locations, stated the US authorities in an announcement.
Whereas the grouping included Japan, the Republic of Korea, Singapore, the Netherlands, the UK, Israel, the United Arab Emirates, and Australia, alongside visitor contributions from Taiwan, the European Union, Canada, and the OECD, it left India out of the league. This raised a pointy assault from the Indian Nationwide Congress towards the Narendra Modi authorities.
The Congress get together blamed PM Modi for the ‘sharp downturn’ in his relations with US President Donald Trump. “Given the sharp downturn within the Trump-Modi ties since Could tenth, 2025, it’s maybe not very shocking that India has not been included. Undoubtedly, it will have been to our benefit if we had been a part of this group. This information comes a day after the PM had enthusiastically posted on his phone name along with his once-upon-a-time good pal and a recipient of many hugs in Ahmedabad, Houston, and Washington DC,” stated Jairam Ramesh.
What Are The Goals Of Pax Silica?
Pax Silica goals to scale back coercive dependencies, shield the supplies and capabilities foundational to synthetic intelligence, and guarantee aligned nations can develop and deploy transformative applied sciences at scale.
Why Pax Silica?
The US authorities says the companions are house to an important firms and buyers powering the worldwide AI provide chain and, thus, will work in the direction of enhancing provide chains.
“Throughout the US and its companions, a transparent consensus has emerged: safe provide chains, trusted know-how, and strategic infrastructure are indispensable to nationwide energy and financial development,” stated the US authorities.
The initiative responds to:
* Rising demand from companions to deepen financial and know-how cooperation with the US.
* The understanding that AI represents a transformative power for our long-term prosperity.
* Recognition that reliable programs are important for safeguarding our mutual safety and prosperity.
* Rising dangers from coercive dependencies.
* The significance of honest market practices and coverage coordination to guard delicate applied sciences and important infrastructure.
Influence On India-US Ties
Whereas the US stated that the grouping will not be about isolating others, however about coordinating with companions who need to stay aggressive and affluent, it clearly signifies the bias Washington holds towards India, the fourth largest economic system of the world.
The USA recognises that India requires vital minerals for a number of strategic tasks and that China has been undermining New Delhi’s ambitions on this space. Regardless of this, Washington has excluded India from the grouping. One main issue behind the choice seems to be India’s hesitation to open its agriculture sector to US pursuits in the course of the ongoing commerce negotiations. Nonetheless, this might show a strategic misstep, identical to the Donald Trump imposed tariffs.
India has positioned itself as a key pillar of US technique within the Indo-Pacific, significantly in balancing China’s dominance throughout provide chains, know-how, and important minerals. Excluding India from Pax Silica weakens the narrative of India as a trusted, indispensable associate in constructing resilient, China-independent ecosystems. For New Delhi, the transfer reinforces perceptions that Washington’s partnerships stay conditional and topic to industrial strain.
Pax Silica is explicitly designed to scale back dependence on China throughout minerals, semiconductors, and AI infrastructure. India is likely one of the few international locations with the dimensions, workforce, and geopolitical motivation to help that goal. Conserving India exterior the framework dangers slowing diversification efforts and should inadvertently strengthen China’s leverage if various provide chains fail to achieve scale rapidly.
Initiatives just like the Quad are constructed on the premise of shared strategic objectives relatively than slender financial compliance. If India perceives Pax Silica as a closed membership relatively than an inclusive strategic platform, it could change into extra cautious about future US-led frameworks—lowering momentum for collective motion on know-how, local weather, and safety. The US transfer might weaken each the credibility of the undertaking and the resilience of Indo-US ties at a vital second in international energy competitors.