Days after finalising a landmark trade agreement, India and the United States have taken another significant step to deepen strategic cooperation, with New Delhi backing a US-led critical minerals trading bloc aimed at reducing global dependence on China.
External Affairs Minister S Jaishankar represented India at the Critical Minerals Ministerial, a high-level summit hosted by the Trump administration, which brought together representatives from 54 countries. The initiative seeks to build resilient, diversified, and secure supply chains for critical minerals and rare earth elements essential to advanced technologies.
The summit was convened by US Secretary of State Marco Rubio, with US Vice-President JD Vance outlining plans for a new trading zone focused on stable investment environments and reduced exposure to geopolitical disruptions.
India Supports FORGE Initiative
Speaking to the media, Jaishankar said the ministerial meeting was the primary reason for his visit to the United States. He confirmed India’s support for the Forum on Resource, Geostrategic Engagement (FORGE), a new initiative unveiled during the summit.
“The discussion was very good. Critical minerals are a very important subject, and the US has been a partner for some years,” Jaishankar said, according to ANI. He also highlighted the importance of international cooperation to de-risk supply chains and avoid excessive concentration in global resource markets.
What Is the Critical Minerals Trading Bloc?
The 2026 Critical Minerals Ministerial is a key US initiative aimed at reshaping global supply chains for critical minerals and rare earths—sectors currently dominated by China. According to US estimates, China leads production of 30 minerals classified as critical and accounts for nearly 70% of global rare earth mining and over 90% of processing capacity.
The US State Department has described critical minerals as essential for technologies such as artificial intelligence, semiconductors, batteries, robotics, and autonomous systems, noting that their strategic importance will only grow in the coming years.
Through the proposed bloc, the US and partner nations aim to create secure, transparent, and resilient supply chains, reducing vulnerabilities linked to geopolitical tensions and market disruptions.
India’s Expanding Push on Rare Earths
India’s participation in the US-led initiative comes amid its own renewed focus on critical minerals. During the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced government support for mineral-rich states such as Andhra Pradesh, Kerala, Tamil Nadu, and Odisha to develop dedicated rare earth corridors.
The budget also unveiled Indian Semiconductor Mission 2.0, aimed at strengthening domestic semiconductor manufacturing and reducing reliance on external suppliers, particularly China.
While addressing the ministerial meeting in Washington, Jaishankar highlighted India’s ongoing efforts through initiatives such as the National Critical Minerals Mission and rare earth development corridors.
Strategic Significance After Trade Deal
India’s backing of the US-led critical minerals bloc gains added significance as it comes shortly after New Delhi and Washington sealed a bilateral trade deal. As part of the agreement, US tariffs on Indian imports were reduced to 18% from 50%, marking a major reset in economic ties.
The coordinated moves underscore a growing convergence between India and the US on trade, technology, and strategic supply chains amid shifting global power dynamics.
