India and the United States are moving closer to the first phase of a long-awaited trade deal, while also signalling renewed cooperation in technology and supply chains. The latest development includes a scheduled trade call on 13 January and an invitation for India to join the US-led Pax Silica initiative, which focuses on securing AI and semiconductor supply chains.
Trade Negotiations Continue
The two sides remain engaged on the proposed trade arrangement. The next official call on trade is expected on 13 January. The talks are being watched closely because they may shape market access, tariffs, and broader economic ties between the two countries.
Pax Silica Initiative Explained
Pax Silica is a US-led effort to build a trusted and secure technology supply chain. It aims to reduce dependence on hostile actors and strengthen cooperation among friendly and trusted countries. The initiative covers:
- Critical minerals and energy inputs.
- Semiconductor manufacturing and logistics.
- AI infrastructure and data systems.
- ICT networks and fibre-optic cables.
Why India Matters
India was initially left out of the initiative, raising questions about tensions linked to trade uncertainty. Its inclusion now suggests a softer approach. India is seeking a larger role in global manufacturing and technology supply chains, especially as companies pursue China-plus-one strategies. Participation could support investment, technology transfer, and access to advanced AI ecosystems.
AI Investments Strengthen the Case
Recent US corporate commitments have added momentum. Major investments in AI infrastructure and cloud capacity in India show growing interest in the Indian market. These projects may help India build capacity in data centres, advanced computing, and digital infrastructure, while also deepening India-US economic and strategic cooperation.
Last Modified: April 26, 2026