India seeks critical minerals agreement with the US to counter China
India and the US are working together to bolster their critical minerals supply chains, aiming to reduce dependency on China.
As part of this effort, the two countries plan to jointly explore third-country sources for securing critical minerals, with India seeking to transform the current Memorandum of Understanding (MoU) into a more comprehensive partnership agreement. Commerce and Industry Minister Piyush Goyal expressed hope that this move could pave the way for a future free trade agreement (FTA).
The critical minerals partnership aligns with broader efforts by India, the US, Australia, and Japan to strengthen supply chains for essential resources, such as those used in tech and defense industries. Meanwhile, the US has a partnership agreement with Japan, offering non-American firms duty benefits and other advantages.
Although Goyal emphasized progress in discussions with US commerce secretary Gina Raimondo and US trade representative Katherine Tai, the upcoming US presidential election may delay any formal decisions on the trade front.
Additionally, the Indian government is encouraging American semiconductor companies to invest in India, with a fabrication unit expected soon. To boost bilateral ties further, India plans to establish investment centers in New York and Silicon Valley to engage with American investors and promote tourism as a key driver of economic cooperation.