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Current AffairsInternational Relations

Pax Silica and India – Securing Critical Technology Supply Chains

Monday, 16 March 20265 min read837 words27

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In this article

ContextBackground & Historical EvolutionKey Points & FactsMulti-Dimensional AnalysisWay Forward

Context

Pax Silica is a multilateral initiative launched by the United States in December 2025, aimed at securing global supply chains for critical technologies such as semiconductors, artificial intelligence (AI), and rare earth elements (REEs). The initiative seeks to reduce coercive economic dependencies, ensure secure technology and AI supply chains, and build trusted digital infrastructure. India, although not yet a formal member, is expected to be invited to join this U.S.-led initiative. The initiative reflects growing concerns over the geopolitical risks associated with over-dependence on a single country for critical inputs, particularly in light of China's dominance in the global supply of rare earth elements. The COVID-19 pandemic further exposed vulnerabilities in globally fragmented and concentrated supply chains, prompting countries to pursue diversification and resilience strategies. Key members of Pax Silica include technologically advanced and resource-rich countries such as the United States, Japan, Australia, the Netherlands, South Korea, and Singapore.

Background & Historical Evolution

The global technology landscape has been increasingly characterized by the strategic importance of semiconductors, AI, and rare earth elements. Historically, the semiconductor industry has been dominated by a few key players, with the United States, Japan, and South Korea leading in technology and manufacturing capabilities. The rare earth elements market, however, has been largely controlled by China, which has used its dominance as a strategic tool in geopolitical disputes. The importance of securing technology supply chains became evident during the COVID-19 pandemic, which disrupted global supply chains and highlighted the risks of over-reliance on single sources. In response, countries have sought to diversify their supply chains and reduce vulnerabilities. India has been actively involved in initiatives aimed at enhancing supply chain resilience, such as the Supply Chain Resilience Initiative launched with Australia and Japan in 2021, and the Quad's Critical Minerals Initiative. These efforts align with India's broader strategy to strengthen its position in global technology supply chains and reduce dependency on any single country.

Key Points & Facts

  • Pax Silica Initiative: Launched by the U.S. in December 2025 to secure supply chains for semiconductors, AI, and REEs.
  • Objectives: Reduce economic dependencies, ensure secure technology supply chains, and build trusted digital infrastructure.
  • Global Context: Rising geopolitical tensions and China's dominance in REEs have prompted the initiative.
  • Key Members: U.S., Japan, Australia, Netherlands, South Korea, Singapore, Israel, UK, Qatar, UAE, Canada, EU, OECD, Taiwan.
  • India's Role: Expected to join, bringing strengths in digital infrastructure, AI market, and skilled workforce.
  • Challenges for India: Balancing strategic autonomy with alignment to Pax Silica's objectives, protecting nascent industries.
  • Strategic Implications: Potential for two parallel global technology supply chains centered around China and Pax Silica countries.

Multi-Dimensional Analysis

Political & Constitutional Dimensions: The Pax Silica initiative represents a strategic alignment of technologically advanced nations to counterbalance China's influence in critical technology supply chains. For India, joining Pax Silica would signify a shift towards closer cooperation with Western allies, potentially impacting its policy of strategic autonomy. The government may face domestic political challenges in aligning with a U.S.-led initiative, given India's historical stance on non-alignment and independent foreign policy.

Economic & Financial Impact: Participation in Pax Silica could bolster India's semiconductor and AI sectors through increased investments and technology transfers. However, aligning with the initiative may require India to adjust its economic policies, such as reducing subsidies and import controls, which could impact domestic industries. The initiative could also open new markets for Indian technology firms, enhancing their global competitiveness.

Social Dimensions: Strengthening India's position in global technology supply chains could lead to job creation and skill development in the technology sector. However, there may be concerns about the equitable distribution of benefits, particularly if the focus remains on high-tech industries at the expense of traditional sectors.

Governance & Administrative Aspects: Implementing the objectives of Pax Silica would require robust institutional frameworks and coordination among various government departments. India's participation would necessitate policy alignment with other member countries, which could pose challenges given its diverse economic and strategic interests.

International Perspective: Pax Silica is part of a broader trend towards forming strategic alliances to secure critical technology supply chains. India's potential participation reflects its growing importance as a technology hub and strategic partner. However, balancing relations with China, a major trading partner, while aligning with Pax Silica, will require careful diplomatic maneuvering.

Way Forward

In the short term, India should engage in diplomatic dialogues with Pax Silica members to understand the framework's implications and negotiate terms that align with its strategic interests. Medium-term reforms could include enhancing domestic capabilities in semiconductor manufacturing and AI through targeted investments and policy support. India should also focus on building resilient supply chains by diversifying sources of critical minerals and technologies. In the long term, India could aim to become a key player in global technology supply chains by fostering innovation and strengthening its digital infrastructure. Implementing recommendations from the National Strategy on Artificial Intelligence and the India Semiconductor Mission could further bolster India's position. International best practices, such as South Korea's focus on R&D and innovation in the semiconductor sector, could serve as models for India to emulate.

What can be asked in exam?

  • •Prelims angle: Pax Silica is a U.S.-led initiative launched in December 2025.
  • •Prelims angle: The initiative aims to secure supply chains for semiconductors, AI, and rare earth elements.
  • •Prelims angle: Key members include the U.S., Japan, Australia, and the Netherlands.
  • •Mains angle: Discuss the strategic implications of India's participation in Pax Silica on its foreign policy and strategic autonomy. (GS-II, 250 words)
  • •Mains angle: Analyze the economic impact of Pax Silica on India's semiconductor and AI industries. (GS-III, 250 words)

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OPSC PYQ 1 (2022) — Science

Genetic engineering, a revolutionary branch of biotechnology, continues to evolve rapidly, transforming the way we approach medicine, agriculture and various scientific endeavours. Recent developments in this field highlight both the immense potential and ethical considerations that come with the power to manipulate DNA. In the medical realm, gene editing technologies like CRISPR-Cas9 have gained prominence. These tools offer unprecedented precision in modifying genes, holding promise for treating genetic disorders. In a groundbreaking clinical trial, researchers successfully used gene editing to treat sickle cell anaemia. The patient’s own modified cells were reintroduced into their body, resulting in reduced symptoms and an improved quality of life. In agriculture, genetic engineering is driving advancements in crop production and food security. The development of Genetically Modified (GM) crops has enabled plants to resist pests, withstand harsh climates and improve nutritional content. For instance, GM rice has been biofortified to contain higher levels of essential vitamins, potentially combating malnutrition in regions where rice is a staple food. However, these advancements also raise ethical concerns. The potential for creating “designer babies” through gene editing has sparked debates about the boundaries of genetic manipulation. The question of whether it’s ethical to alter human DNA to enhance physical or cognitive traits continues to challenge bioethicists, policymakers and society at large. Data indicates the exponential growth of genetic engineering research. In the past decade, the number of scientific publications related to CRISPR technology has multiplied significantly. In 2010, there were approximately 150 CRISPR-related publications; by 2020, that number had soared to over 9,000. This surge demonstrates the profound impact of genetic engineering on the scientific community. As we navigate this brave new world of genetic engineering, striking a balance between innovation and ethical considerations remains paramount. The potential to cure genetic diseases, enhance food security and make leaps in scientific understanding is immense. However, careful consideration and collaboration are necessary to ensure that the benefits are realized while addressing the ethical complexities that accompany these technological breakthroughs.

Which gene editing technology has gained prominence recently?

  1. It is used for creating GM crops
  2. It is a tool for gene editing
  3. It enhances physical traits
  4. It is used in biofortification

Answer: A. It is used for creating GM crops

OPSC PYQ 2 (2022) — English Comprehension

EMBEZZLE

In the following question, choose the word which best expresses the meaning of the given word: EMBEZZLE

  1. Misappropriate
  2. Balance
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OPSC PYQ 3 (2023) — Reasoning

How many pairs of letters are there in the word 'CASTRAPHONE' which have as many letters between them in the word as in the alphabet?

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Free sample · Question 1 of 3

Science · 2022

Direction / Passage

Genetic engineering, a revolutionary branch of biotechnology, continues to evolve rapidly, transforming the way we approach medicine, agriculture and various scientific endeavours. Recent developments in this field highlight both the immense potential and ethical considerations that come with the power to manipulate DNA. In the medical realm, gene editing technologies like CRISPR-Cas9 have gained prominence. These tools offer unprecedented precision in modifying genes, holding promise for treating genetic disorders. In a groundbreaking clinical trial, researchers successfully used gene editing to treat sickle cell anaemia. The patient’s own modified cells were reintroduced into their body, resulting in reduced symptoms and an improved quality of life. In agriculture, genetic engineering is driving advancements in crop production and food security. The development of Genetically Modified (GM) crops has enabled plants to resist pests, withstand harsh climates and improve nutritional content. For instance, GM rice has been biofortified to contain higher levels of essential vitamins, potentially combating malnutrition in regions where rice is a staple food. However, these advancements also raise ethical concerns. The potential for creating “designer babies” through gene editing has sparked debates about the boundaries of genetic manipulation. The question of whether it’s ethical to alter human DNA to enhance physical or cognitive traits continues to challenge bioethicists, policymakers and society at large. Data indicates the exponential growth of genetic engineering research. In the past decade, the number of scientific publications related to CRISPR technology has multiplied significantly. In 2010, there were approximately 150 CRISPR-related publications; by 2020, that number had soared to over 9,000. This surge demonstrates the profound impact of genetic engineering on the scientific community. As we navigate this brave new world of genetic engineering, striking a balance between innovation and ethical considerations remains paramount. The potential to cure genetic diseases, enhance food security and make leaps in scientific understanding is immense. However, careful consideration and collaboration are necessary to ensure that the benefits are realized while addressing the ethical complexities that accompany these technological breakthroughs.

Which gene editing technology has gained prominence recently?

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