News

India Joins Pax Silica as US Cuts 25% Tariffs; $32.5B AI Investments Announced

India Signs Pax Silica at New Delhi AI Summit, Aims to Cut China Reliance and Boost Semiconductor Mission

Written By : Simran Mishra
Reviewed By : Manisha Sharma

India has officially become a part of the Pax Silica, a US-led technology and supply chain initiative focused on securing critical minerals, semiconductors, and artificial intelligence. The move was formalised on Friday at the AI Impact Summit in New Delhi, when Indian officials signed the Pax Silica declaration with the United States. 

The agreement marks a new chapter in US-India tech ties and global supply chain cooperation. Pax Silica focuses on safe and strong AI supply chains. It also covers semiconductors and critical minerals. These sectors power modern industries. They also shape economic growth and national security.

Why Pax Silica Matters

The United States launched Pax Silica in December. India was initially not part of the group. The original members included Japan, South Korea, Singapore, the Netherlands, the UK, Israel, the UAE, and Australia. These countries lead in chip making and mineral processing.

India’s timing to join the initiative matters. Trade talks between India and the United States improved recently. The US removed 25% extra tariffs earlier this month. Both sides now plan to sign an interim trade deal soon.

US Ambassador Sergio Gor said India’s entry is strategic and essential. He praised India’s engineering talent and growing capacity in critical minerals. He said Pax Silica builds trusted partnerships and reduces risky dependence.

Reducing Dependence on China

Pax Silica aims to reduce heavy reliance on China in key sectors. Many countries depend on China for rare minerals and chip supply. This creates risk during trade tensions. The new grouping wants to build stable AI supply chains among trusted partners.

India imports many advanced semiconductors and high-end chips. It also depends on other countries for rare earth materials. Joining Pax Silica can help India attract more investment and technology support.

Large US companies already plan major investments in India. Microsoft announced $17.5 billion to expand AI and cloud infrastructure over four years. Google announced plans to invest more than $15 billion to build an AI data centre in Andhra Pradesh. These projects will strengthen India’s AI supply chains.

Boost to India’s Semiconductor Ambitions

India also wants to grow its semiconductor industry. The government has launched a semiconductor mission to boost chip manufacturing. Pax Silica can support this goal through partnerships and joint projects.

The global technology order is changing fast. Countries now protect supply chains and advanced industries. Groups like Pax Silica shape the future of semiconductors and AI supply chains.

India’s entry into Pax Silica signals a shift in the global tech order. Countries now group together to protect supply chains and advanced technology. India plans to become a key hub in global manufacturing and chip production.

Even though India joined later, the move remains important. Pax Silica gives India a seat at the table as global rules for AI and semiconductors take shape. It strengthens US-India tech ties and supports India’s long-term tech security goals.

For more updates, follow our live pages.

Also Read: How AI Impact Summit 2026 is Driving Collaboration for Responsible AI

Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp

Crypto News Today: Metaplanet Posts $619M Loss, Ledn Closes $188M BTC ABS Deal

Solana Drops 40% in 30 Days: Can SOL Recover by 2027?

Dogecoin Price Prediction: Will $0.10 Support Survive?

Crypto Market Turns Bearish, Why This Cheap Altcoin Is Still Up 300%

Solana Price Alert: Panic in Futures, Will $80 Break?