Indo-US Ties On Firmer Footing As India Joins Pax Silica Global AI Supply Chain

India on Friday formally joined the US-led  Pax Silica initiative that is centred around building the foundation of a tech-driven new economy that relies on computers and rare earth minerals for taking development to a new frontier.

With India signing on to the Pax Silica agreement, ties with the US appear to be on a much firmer footing. Last year witnessed a dramatic downturn following the 50 per cent tariff hike slapped by the Trump administration. But with the bilateral trade deal on, defence co-operation in place and now New Delhi joining the Pax Silica agreement, India-US relations are on a good wicket.

``We choose freedom, partnership and strength. With India's entry to Pax Silica, we choose to win," Ambassador Sergio Gor said in his brief speech this morning. "India's entry into Pax Silica is not just symbolic. It is strategic and essential," he added.

While Gor did not mention China, it is well-known that the US and China are in a race to master AI. By getting all like minded nations under the Pax Silica platform, the US is hoping to have like minded countries on board against rival China. This fits into India's own strategic calculations against China's dominance.

Since the Covid pandemic that brought the world to a halt and disrupted supply chains, most of which originated in China, the US has focused on building resilient supply lines that can by pass or at least work around China’s dominance. “Reduce coercive dependencies,’’ was emphasised by both Gor and US Under Secretary Jacob Helberg while speaking at the event which marked India joining the  Pax Silica initiative. “We view India as a partner to help de-risk and diversify those supply chains,” Helberg said in an interview with CNBC, ahead of his visit to India.

India has first-hand experience of this, when after the military confrontation between India and China in the summer of 2020, Indian manufacturers suffered because of dependence on critical minerals from China.

India’s move signals closer strategic and economic ties between New Delhi and Washington, particularly in emerging sectors such as artificial intelligence and advanced manufacturing.

The signatories of the Pax Silica Declaration include Australia, Greece, Israel, Japan, Qatar, South Korea, Singapore, UAE and the UK, according to the US State Department. Non-signatory participants are Canada, the Netherlands, European Union, Organization for Economic Cooperation and Development and Taiwan.

India’s exceptional IT talent, together with US innovative technology can be harnessed to better serve both countries. Micron CEO Sanjay Mehrotra, speaking at the signing ceremony said, “The Pax Silica initiative will bring the technology collaboration closer between the US and India." He emphasised the strength of bilateral cooperation between the two countries in semiconductors, memory technology and AI infrastructure. He also spoke of the $2.75 billion Micron investments in Gujarat, underscoring India’s growing role in global supply chains.