India joins US-led 'Pax Silica' alliance to bolster AI and critical minerals supply chains

New Delhi (PTI): India on Friday joined the US-led strategic alliance called 'Pax Silica' that aims to build a resilient supply chain for critical minerals and artificial intelligence with both sides projecting it as an initiative to cut over-dependence on one country, seen as an oblique apparent reference to China.

US Under Secretary for Economic Affairs Jacob Helberg, welcoming India to the coalition, flagged challenges arising out of "massively over-concentrated" supply chains for critical minerals and "threats of economic coercion and blackmail".

Though Helberg didn't name any country, it was almost clear that his remarks were directed at China's export controls on rare earth minerals and related products.

China has been controlling the flow of rare earth minerals which have a wide range of applications including in electronics, clean energy, aerospace, automotive, and defence sectors.

US Ambassador Sergio Gor, welcoming India to Pax-Silica, said the country brings strength to the coalition.

"Policies that will reinforce US-India tech cooperation will power AI innovation and adoption for years to come. We can share trusted AI technology with the world and especially with partners like India," he said.

"And critically, India brings strength. Peace doesn't come from hoping adversaries will play fair. We all know they won't. Peace comes through strength. India understands this. India understands strong borders," he said.

"India understands this part of the world. That strength, that sovereignty is exactly what Pax-Silica amplifies. Because here's the truth, strength multiplies when it's connected." India signed a pact to formally join the Pax Silica at a ceremony held at the AI Impact summit. It was attended by Union Minister for Electronics and Information Technology Ashwini Vaishnaw, Helberg and Gor.

In his address, Vaishnaw framed the moment as one that transcends a ceremonial signing.

"We are not just holding a summit; we are building the future," he said, emphasising that new foundations and new opportunities are being created for the younger generation.

He underscored India's growing semiconductor capabilities, stating, "Today, India's talented engineers are designing the world's most advanced two-nanometer chips. The semiconductor industry will require around one million new skilled professionals, and this is a very big opportunity for India."

New Delhi's decision to join the coalition came amid efforts by both sides to finalise the proposed trade deal and move forward on several other initiatives to solidify bilateral ties after a period of severe strain.

"For too long, we have allowed the foundations of our economic security to drift. We find ourselves grappling with a global supply chain that is massively over-concentrated," Helberg said.

"We watch as our friends and allies face daily threats of economic coercion and blackmail, forced to choose between their sovereignty and their prosperity." Helberg said the US and India are affirming their embrace of a pro-innovation approach to AI and forging a supply chain for a solid foundation for prosperity.

"So today, as we signed the Pax-Silica declaration, we say no to weaponised dependency, and we say no to blackmail. And together, we say that economic security is national security.

"But we must be precise about what that word means. There are some who use the words like global governance and sovereignty in the same breath, just like Orwell used," he said.

The senior Trump administration official added: "We are building a new architecture that diffuses intelligence, placing the awesome power of AI into the palm of our people's hands and unleashing a wave of unprecedented possibility." In his remarks, Gor said Pax-Silica will define the 21st century economic and technological order and said India will play a key role in the new initiative.

"India's entry into Pax-Silica isn't just symbolic. It's strategic. It's essential. India is a nation with deep talent, deep enough to rival challengers," he said.

"India's engineering depth offers critical capabilities for this vital coalition. In addition to talent, India has made important strides towards critical mineral processing capacity, and that's something that we're fully engaged on also," he said.

The US ambassador also spoke about the "limitless potential" for cooperation between India and the US.

"From the trade deal to Pax-Silica to defence cooperation, the potential for our two nations to work together is truly limitless. And I aim to fulfill that over the next three years that I'm here," he said.

Gor also made a mention of the proposed India-US trade pact.

"Earlier this month, we concluded the interim trade agreement, a deal that shapes the economic contours of the Indo-Pacific. We overcame friction points that had held us back for far too long," he said.

"That agreement wasn't just about trade flows or tariff schedules. It was about two great democracies saying we will build together, not just buy from one another. And now today, we take the next step," he said.

The US envoy described Pax-Silica as a "coalition of capabilities" that replaces "coercive dependencies with a positive sum alliance of trusted industrial bases." "We welcome India joining to co-found the future. Pax Silica is about whether free societies and it will control the commanding heights of the global economy," he said.

"It's about whether innovation happens in Bengaluru and Silicon Valley or in surveillance states that use technology to monitor and control their people. We choose freedom. We choose partnership. We choose strength. And today, with India's entry into Pax Silica, we choose to win," he added.

Pax Silica was launched in December to build a secure, resilient, and innovation-driven supply chain for critical minerals and artificial intelligence (AI).

The Pax Silica Summit was held in Washington on December 12 where partner nations signed the Pax Silica declaration.

The declaration lays out a shared vision of deep economic and technology cooperation across supply chains -- from raw materials through semiconductors and AI infrastructure -- and commitment to mutual prosperity and security.

The member nations of the Pax Silica included Australia, Greece, Israel, Japan, Qatar, Republic of Korea, Singapore, the United Arab Emirates and the United Kingdom.

Gor last month announced an invitation to New Delhi to join the strategic alliance.

One of the key pillars of Pax Silica was to establish a durable economic order to drive AI-powered prosperity across partner nations.