'Not very surprising': Congress blames Trump-Modi ties over reports of India not being part of Pax Silica; what is the nine-nation initiative?

Congress attacked Prime Minister Narendra Modi after reports that India was left out of Pax Silica, a US-led nine-nation initiative to secure AI and semiconductor supply chains and reduce Chinese dominance, saying the exclusion reflects a sharp downturn in Trump–Modi ties since May 10, 2025. Pax Silica — whose initial members include the US, Japan, South Korea, Singapore, the Netherlands, the UK, Israel, the UAE and Australia — is framed by the US State Department as a flagship effort on AI and supply-chain security, and Congress argued India’s absence is a missed strategic opportunity. The criticism comes as Modi and former President Trump held a recent “warm” call amid separate India–US trade talks that could address the Trump administration’s 50% tariffs on Indian goods, highlighting the broader political stakes around technology alignment and trade relations.

Analysis

Reports that India was excluded from Pax Silica, a US‑led nine‑nation initiative (United States, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia), triggered sharp political criticism from Congress, with general secretary Jairam Ramesh citing a “sharp downturn in Trump–Modi ties since May 10, 2025” as context for the omission. The article notes Prime Minister Modi and former President Trump recently spoke and that the call was described by Modi as “warm and engaging,” while separate India–US trade talks concluded with a potential focus on relief from the Trump administration’s 50% tariffs on Indian goods. The U.S. State Department frames Pax Silica as a flagship effort to secure AI and high‑tech supply chains across critical minerals, energy, advanced manufacturing, semiconductors, AI infrastructure and logistics, so India’s absence implies reduced access to coordinated supply‑chain security measures and partner investment channels. India’s announcement that it will host the India‑AI Impact Summit 2026 (Feb 19–20) suggests a parallel diplomatic and technology engagement strategy; the sentiment read from the coverage is mildly negative (sentiment score -0.25) with a modest market impact score (0.25), indicating potential short‑term political risk but limited immediate market disruption.

Key Decisions for Investors

• Monitor outcomes of the India–US trade talks and any concrete tariff relief announcements closely, as tariff changes would materially affect exporters and trade‑sensitive sectors
• Track Pax Silica member commitments (investment, supply agreements, standards alignment) because capital and supply‑chain reallocation toward member countries could disadvantage Indian semiconductor and AI supply‑chain aspirations
• Reassess exposure to Indian tech, semiconductor, and critical‑minerals projects and consider hedges if diplomatic tensions persist, given the political risk to access and collaboration
• Watch the India‑AI Impact Summit 2026 for partnership announcements or alternate multilateral initiatives that could restore access to AI infrastructure and investment opportunities