India Joins US-Led Critical Minerals Bloc After Trade Deal

Just days after finalizing a trade agreement, India and the US are strengthening ties through the Critical Minerals Ministerial, a strategic initiative designed to counter China’s dominance in the global minerals market. External Affairs Minister S. Jaishankar represented India at the summit, which brought together 54 nations under the Trump administration’s leadership.

Summit Highlights and Global Strategy

The summit, convened by US Secretary of State Marco Rubio, also featured Vice President JD Vance, who outlined plans for a new trading zone. Vance emphasized building diverse production hubs, stable investment conditions, and resilient supply chains immune to external disruptions.

Jaishankar confirmed that the summit was the primary reason for his US visit and announced India’s support for FORGE (Forum on Resource, Geostrategic Engagement), a new initiative unveiled at the event. He stressed the importance of de-risking supply chains and reducing overdependence on concentrated sources.

Understanding the Critical Minerals Bloc

The 2026 Critical Minerals Ministerial aims to reshape the global market for rare earths and critical minerals, where China currently dominates — producing 70% of rare earths and controlling over 90% of processing capacity.

According to the US State Department, these minerals are vital for AI, robotics, batteries, and autonomous technologies, making secure supply chains a global priority.

India’s Rare Earth Push

India’s participation comes shortly after the Union Budget 2026–27, where Finance Minister Nirmala Sitharaman announced support for mineral-rich states — Andhra Pradesh, Kerala, Tamil Nadu, and Odisha — to develop rare earth corridors.

She also introduced Indian Semiconductor Mission 2.0, aimed at challenging China’s semiconductor monopoly and strengthening India’s tech ecosystem.

Jaishankar highlighted India’s domestic initiatives, including the National Critical Minerals Mission, aligning with the US-led bloc to counter China’s global dominance.

Trade Deal Context

India’s backing of the US initiative gains added weight as it follows the recent trade deal between New Delhi and Washington, which reduced US tariffs on Indian imports from 50% to 18%, marking a significant step in bilateral economic cooperation.