Why in the News?

India has joined Pax Silica, a US-led effort to reshape global supply chains for semiconductors and critical technologies. However, India entered after the initiative was largely designed, similar to its late entry into the Minerals Security Partnership (MSP). This matters because Pax Silica prioritises strong manufacturing capacity, advanced processing, and ready technology ecosystems, areas where India still lags. The episode highlights a clear pattern: India is valued for strategic reasons but lacks technological leverage, limiting its bargaining power in US-led economic security groupings.

What is Pax Silica?

1. It is the U.S Department of State’s flagship effort on AI and supply chain security, advancing new economic security consensus among allies and trusted partners.
2. Strategic concept: Spanning critical minerals → energy → advanced manufacturing → semiconductors → AI infrastructure → logistics
3. Core Objectives:
   1. Reduce coercive dependencies
   2. Partner to secure global tech supply chains, address AI supply chain opportunities and vulnerabilities, and explore joint investment
   3. Protect sensitive technologies and build trusted digital infrastructure
4. Long Term Framework:
   1. Unite countries hosting advanced tech companies to unleash the economic potential of the new AI age
   2. Establish a durable economic order to drive AI-powered prosperity across partner nations

What does India’s late entry into Pax Silica indicate?

1. Timing disadvantage: Signals entry after agenda-setting was completed, limiting India’s ability to shape rules or priorities.
2. Pattern repetition: Reflects earlier experience with MSP, where India joined after core structures were in place.
3. Diplomatic signalling: Indicates conciliatory outreach by the US rather than proactive Indian leverage.

Why does Pax Silica matter?

1. Strategic objective: Restructures semiconductor and advanced manufacturing supply chains away from China.
2. Economic coercion control: Reduces vulnerability to Chinese leverage in global chip production.
3. Technology governance: Aligns partner countries on standards for AI, semiconductors, and digital infrastructure.

Why is India seen as lacking a ‘critical edge’?

1. Manufacturing depth: Absence of large-scale advanced semiconductor fabrication capacity.
2. Processing capability: Limited expertise in high-end chip processing and precision manufacturing.
3. Ecosystem gaps: Weak integration of research, fabrication, and supply-chain logistics.

How does Pax Silica compare with other member countries?

1. Japan and South Korea: Strong semiconductor fabrication and equipment manufacturing base.
2. Taiwan: Global leadership in advanced chip manufacturing.
3. Singapore: Critical logistics, processing hubs, and supply-chain integration.
4. Israel and UK: Advanced innovation ecosystems and high-end R&D capabilities.
5. India: Emerging manufacturing base but insufficient scale and specialization.

What does this reveal about US strategic intent?

1. China containment: Sidelines China from high-end technology and semiconductor supply chains.
2. Selective inclusion: Prioritises countries with immediate technological deliverables.
3. Geopolitical balancing: Includes India for strategic depth, not technological indispensability.

Why does this matter for India’s foreign and economic policy?

1. Reduced bargaining power: Late inclusion weakens India’s ability to demand concessions.
2. Capability-first diplomacy: Demonstrates that geopolitical alignment alone is insufficient.
3. Strategic lesson: Economic security partnerships increasingly reward technological readiness, not political intent.

Conclusion

India’s entry into Pax Silica underscores a structural challenge in its external engagement: strategic relevance without commensurate technological capacity. The episode reinforces that future influence in global groupings will depend less on diplomatic goodwill and more on domestic manufacturing strength, processing expertise, and ecosystem maturity.

PYQ Relevance

[UPSC 2024] “The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.” Explain this statement with examples.

Linkage: It reflects Western strategy to de-risk supply chains and counter China through selective partnerships with India. Contemporary Linkage: Pax Silica and MSP show India’s geopolitical value, but late entry highlights capability-based inclusion.

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