Pax Silica explained: Why Washington wants India in and why New Delhi is hesitating | World News

New Delhi: India has received an invitation to join Pax Silica, a strategic alliance focused on advancing artificial intelligence and securing supply chains for rare earth elements and critical minerals. This led to a policy review within the government. The proposal focuses 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 aims to provide stable and reliable access to raw materials and semiconductor components. The aim of the initiative is to reduce disruptions in sectors dependent on electronics, energy systems and high-tech computing. India has not made a decision so far and is examining the proposal before reaching an agreement.

An ET report shows that New Delhi has recognized the strategic value of being part of this emerging arrangement. Policymakers are also cautious about preserving domestic policy space. Sectors such as artificial intelligence require regulatory flexibility, and there are concerns that participation in a structured international framework could limit India’s ability to chart its own path in key technology areas.

Supply chain security stands out as Pax Silica’s central appeal. Reliable access to critical minerals and semiconductors is essential for industrial growth. Disruptions to these supply lines could have lasting economic consequences. The initiative recommends coordination across sourcing, production, packaging, logistics and transportation to ensure continuity.

Pax Silica also offers a way for India to reduce its dependence on China for the supply of semiconductors. Member countries have pledged to cooperate across the entire chip ecosystem, with an emphasis on trusted networks and common standards. The goal is to prevent misuse of sensitive technologies and protect critical infrastructure.

India currently 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 also taking regional realities into account. China continues to play an important role in global trade and production. Sudden departure carries economic and strategic risks. Discussions between India and the US on Pax Silica have not yet begun. Internal consultations are still ongoing. Officials also said India joined the talks later than many 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, United Arab Emirates and Qatar later joined. India received its invitation only in mid-January; This is a move confirmed by US Ambassador Sergio Gor ahead of his visit to the country.

Many influential players are outside the frame. Taiwan has not made any statement regarding participation. The European Union (EU) attended the first summit but played a limited role, demonstrating its independent industrial and technology policies.

India is also factoring in parallel diplomatic and economic engagements. Negotiations on a free trade agreement with the EU have reached an advanced stage and an important announcement is expected soon. Planned collaboration between India and the EU’s 27 member states across multiple sectors adds another layer to the decision-making process.

Uninterrupted access to critical minerals and semiconductors is a strategic imperative for India. Equally important is the preservation of policy autonomy. Any international partnership must balance economic opportunities with national interests. Pax Silica offers potential benefits as well as complex options that require careful consideration.