Relevant for Exams
India to join US critical minerals meet and Pax Silica initiative to diversify supply chains from China.
Summary
India is slated to participate in a crucial US-organized meet on critical minerals, with Union Minister Ashwini Vaishnaw likely representing the nation. This move aligns with a broader US strategy to diversify global supply chains away from China's dominance, which is vital for India's economic and technological security. India will also join the US-led Pax Silica initiative, enhancing strategic partnerships in emerging technologies like AI.
Key Points
- 1India is participating in a key US-organized meet focused on critical minerals.
- 2Union Minister Ashwini Vaishnaw is the likely representative for India at the critical minerals meet.
- 3The US initiative aims to diversify global supply chains, reducing dependence on China's dominance in critical minerals.
- 4India will also join the US-led 'Pax Silica' initiative.
- 5India's participation in the 'Pax Silica' initiative will occur ahead of the US's upcoming AI summit.
In-Depth Analysis
India's burgeoning economy and ambitious technological goals are increasingly intertwined with the global race for critical minerals and advanced technologies. The recent announcement of India's participation in a crucial US-organized meet on critical minerals, with Union Minister Ashwini Vaishnaw likely representing the nation, underscores a significant strategic pivot. This move is not merely about resource acquisition; it's a profound statement on India's commitment to diversifying its supply chains, safeguarding its economic security, and asserting its role in the emerging global technological order.
The background to this engagement lies in the escalating geopolitical competition and the recognition of critical minerals as strategic assets. Critical minerals, such as lithium, cobalt, nickel, rare earth elements, and graphite, are indispensable for modern technologies—from electric vehicles and renewable energy systems to semiconductors, defence equipment, and advanced electronics. For decades, China has meticulously built a dominant position across the entire critical mineral supply chain, from mining and refining to processing and manufacturing. This near-monopoly grants Beijing significant economic leverage and the potential for 'supply-chain weaponisation,' a concern highlighted during recent geopolitical tensions and trade disputes. The COVID-19 pandemic further exposed the vulnerabilities of highly concentrated global supply chains, prompting nations worldwide to seek diversification and resilience.
The US, under its broader Indo-Pacific strategy, has been actively working to de-risk and diversify global supply chains away from China. Initiatives like the Minerals Security Partnership (MSP), formed in June 2022, aim to catalyse public and private investment in critical mineral supply chains globally. India's participation in this US-led meet signifies its alignment with these efforts, moving beyond mere bilateral trade to strategic partnership in securing essential resources. Union Minister Ashwini Vaishnaw's likely attendance, given his portfolios in Railways, Communications, Electronics, and Information Technology, highlights the cross-sectoral importance of critical minerals for India's industrial, digital, and strategic autonomy.
Beyond critical minerals, India's decision to join the US-led 'Pax Silica' initiative ahead of the US AI summit further emphasizes its commitment to advanced technology collaboration. While details on 'Pax Silica' are still emerging, the name strongly suggests an focus on silicon-based technologies, primarily semiconductors, which are the bedrock of all modern electronics and AI. India has its own ambitious 'India Semiconductor Mission' (ISM), launched in 2021 with an outlay of INR 76,000 crore, to build a robust semiconductor and display manufacturing ecosystem. Collaborating with the US through 'Pax Silica' could provide India with crucial technological know-how, investment, and access to a diversified supply chain for semiconductor manufacturing, reducing reliance on existing geopolitical hotspots.
For India, this participation holds immense significance. Economically, securing a stable and diversified supply of critical minerals is vital for its 'Make in India' and 'Atmanirbhar Bharat' initiatives, particularly in sectors like electric vehicles (EVs), renewable energy, and defence manufacturing. It mitigates price volatility and supply disruptions, fostering a more predictable environment for domestic industries. Technologically, it ensures access to the foundational elements required for India's digital transformation, AI development, and advanced computing aspirations. Geopolitically, it strengthens India's strategic partnership with the US, aligning interests in critical technology and supply chain resilience, and provides a counterbalance to China's influence in the Indo-Pacific. This engagement also reinforces India's commitment to a sustainable energy transition, as critical minerals are key to green technologies.
Historically, India's mineral policy has evolved from state control to greater private sector participation. The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), and the National Mineral Policy 2019 are cornerstone legislations. The recent Mines and Minerals (Development and Regulation) Amendment Act, 2023, is particularly relevant, as it delisted six critical minerals (lithium, beryllium, niobium, titanium, tantalum, and zirconium) from the list of atomic minerals, opening them up for private sector exploration and mining. Furthermore, it identified 24 critical minerals, including rare earth elements, for which the central government will grant mining leases. This legislative push aligns perfectly with the current international efforts to secure these resources. While no direct constitutional articles mandate international mineral cooperation, the Directive Principles of State Policy, particularly Article 39(b) and (c), which focus on the distribution and control of material resources for the common good and preventing concentration of wealth, conceptually underpin the nation's strategic resource management efforts to ensure national economic security and development.
The future implications are profound. India could emerge as a crucial node in a diversified global critical mineral supply chain, attracting significant investment in exploration, mining, and processing facilities. This will necessitate robust policy support, environmental clearances, and skilled workforce development. The collaboration on 'Pax Silica' could accelerate India's journey towards semiconductor self-reliance, fostering innovation and creating high-tech jobs. However, challenges remain, including the capital-intensive nature of mining and processing, technological gaps, and the need for sustainable practices. India's strategic engagements like these are pivotal in shaping its economic trajectory and geopolitical standing in the 21st century, ensuring its resilience against future global shocks and its leadership in emerging technologies.
Exam Tips
This topic falls under GS Paper 2 (International Relations, Bilateral Groupings, Foreign Policy) and GS Paper 3 (Indian Economy, Infrastructure, Science & Technology, Environment & Ecology) for UPSC. For other exams, it relates to current affairs on economy, technology, and international affairs.
Study related initiatives like the Minerals Security Partnership (MSP), Indo-Pacific Economic Framework for Prosperity (IPEF), and India Semiconductor Mission (ISM). Understand the key critical minerals (e.g., lithium, cobalt, rare earths) and their applications.
Be prepared for MCQs on the names of initiatives (Pax Silica, MSP), key ministers involved (Ashwini Vaishnaw), and the countries participating. For descriptive questions, focus on India's energy security, supply chain resilience, geopolitical implications of critical minerals, and the role of technology in India's growth.
Familiarize yourself with the National Mineral Policy 2019 and key provisions/amendments of the Mines and Minerals (Development and Regulation) Act, 1957, especially the recent changes regarding critical minerals.
Understand the 'why' behind China's dominance in critical minerals and how global powers are trying to diversify, linking it to concepts like resource nationalism and economic diplomacy.
Related Topics to Study
Full Article
India is set to participate in a key US-organized meet on critical minerals, with Minister Ashwini Vaishnaw likely to represent the nation. This engagement signals a broader US effort to diversify supply chains away from China's dominance. India will also join the US-led Pax Silica initiative ahead of its AI summit.
