Paper: GS – II, Subject: International Relations, Topic: Regional and global groupings, Issue: Pax Silica and India’s Technology Supply-Chain Strategy.
Context:
Recently, India joined 35 other countries in signing the United States-led Pax Silica initiative at its second summit in Washington. The initiative seeks to build secure supply chains for critical minerals, semiconductors, Artificial Intelligence (AI) and digital infrastructure. India expects it to attract investment, reduce import dependence and strengthen domestic manufacturing.
Key Takeaways:
Explanation:
What Is Pax Silica?
- “Pax” means peace, stability and long-term prosperity, while “Silica” refers to the source material used to produce silicon.
- Pax Silica is a strategic partnership covering critical minerals, energy inputs, advanced manufacturing, semiconductors, AI infrastructure and logistics.
- India joined the initiative in February 2026 at the AI Impact Summit in New Delhi, after not being part of its founding group in December 2025.
Why Was It Created?
- China has periodically restricted rare-earth exports, signalling willingness to use supply chains as geopolitical leverage.
- The COVID-19 semiconductor shortage exposed the risks of single-source supply chains.
- Controlling the silicon supply chain increasingly determines leadership in AI.
Importance for India:
- India depends heavily on imports for semiconductors, rare-earth processing and advanced technology components.
- Pax Silica can attract capital, technology and skills from trusted partners.
- It can support domestic value addition and help India become part of global supply-chain diversification away from China.
- It may also strengthen India’s limited large-scale AI and semiconductor infrastructure.
What Rare-Earth Data Shows:
- India has about 6.9 million tonnes of rare-earth reserves, but produced only around 4,200 tonnes of rare-earth oxides annually during 2020–22.
- China had about 44 million tonnes of reserves and produced nearly 210,000 tonnes in 2022.
- This shows that reserves alone are insufficient; mining, separation, refining and manufacturing capacity are equally important.
Related Indian Initiatives:
- India joined the Minerals Security Partnership (MSP) in 2023 to support secure critical-mineral supply chains.
- It launched the National Critical Mineral Mission in 2025.
- India and the US have also signed a bilateral critical-minerals framework.
- India plans to build 6,000 metric tonnes per annum of Rare Earth Permanent Magnet (REPM) capacity.
Conclusion:
Pax Silica can help India strengthen its mineral, semiconductor and AI supply chains. Its success will depend on domestic processing, technology, investment and environmentally responsible production.
Source: (The Indian Express, The Hindu)
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