The United States on 11 December unveiled a new strategic initiative ‘Pax Silica’ aimed at building a secure and trusted supply chain spanning critical minerals, emerging technologies, advanced manufacturing and semiconductors. The members of the grouping are the US, Japan, South Korea, Singapore, The Netherlands, the United Kingdom, Israel, the United Arab Emirates and Australia. The exclusion of India from this alliance has raised eyebrows in New Delhi and sparked questions about the trajectory of India-US economic and strategic ties. The omission comes at a time when an India-US trade agreement remains elusive despite multiple rounds of high-level political engagement and prolonged technical negotiations while Indian exporters are subjected to harsh 50 per cent tariff by the Trump administration.
Pax Silica has been positioned by Washington as its fl agship initiative on artifi cial intelligence and supply-chain security, and is seen as an initiative to counter Chinese dominance in these fi elds. The alliance is designed to reduce dependence on China, which currently dominates nearly 70 per cent of global rare-earth mining and plays a central role in several critical technology supply chains. At its core, it seeks to lock down the full technology ecosystem that underpins modern AI — from access to rare minerals and energy inputs to semiconductor fabrication, AI infrastructure, logistics and advanced manufacturing.
Also Read
The symbolism behind the name is deliberate. “Pax” suggests order and stability, while “Silica” is a direct reference to silicon chips and computing power. Together, the initiative signals an effort to shape who controls the key inputs and strategic choke points of the AI-driven global economy.
Pax Silica’s sttated objectives include jointly identifying vulnerabilities and opportunities across AI supply chains; promoting joint ventures and co-investment arrangements; protecting sensitive technologies and critical infrastructure from access by “countries of concern”. If implemented aggressively, these goals risk isolating countries outside the framework, such as India, from critical technology fl ows and investment.
The US leaving out India from the alliance has triggered a political debate at home and a deeper strategic conversation about Washington’s intentions. Is this merely a matter of timing, a refl ection of unresolved trade frictions, or a more pointed signal about how the US is redrawing the global technology map? The answer may partly lie in a series of recent developments that suggest rising pressure on India to widen its market access, particularly in agriculture, to American companies. However, the major US and allies’ concern regarding India could be the trust factor. The US seems unable to believe India would keep key secret advancements secure and safe.
On 10 December, Mexico announced tariffs of up to 50 per cent on imports from India, China and other countries, affecting products ranging from textiles and footwear to automobiles and auto components, effective January 2026. This move is striking because Mexico does not feature among India’s top 20 trading partners, raising questions about broader geopolitical alignments rather than purely tradebased considerations. Many believe that Mexico could be doing this at America’s behest. This is similar to the US imposing an additional 25 per cent punitive tariff on India for New Delhi’s purchase of Russian crude oil. Here, the Russian oil was just a ruse while the real intent was to punish New Delhi.
Just days earlier, President Trump threatened fresh tariffs on Indian basmati rice following allegations by an American agricultural delegation that India was “dumping” rice in their market.
All these emerging developments underscore the need for renewed diplomatic engagement by New Delhi which it seems currently incapable of. As global supply chains fragment and technology alliances harden, India will have to carefully navigate trade negotiations, protect market access, and strengthen its position in critical technology ecosystems to safeguard its long-term economic and strategic interests.
However, these things appear to be easier said than done as New Delhi’s misguided foreign policy has left the country virtually friendless.
