After Trade Deal, India Backs US-Led Critical Minerals Bloc to Counter China

Days after sealing a major trade agreement, India and the United States appear to be deepening strategic cooperation through a new initiative on critical minerals aimed at reducing China’s dominance in the sector.

External Affairs Minister S Jaishankar attended the Critical Minerals Ministerial in Washington, where India was among 54 countries hosted by the Trump administration. The summit focused on building resilient supply chains for rare earths and other strategic minerals.

The meeting was convened by US Secretary of State Marco Rubio, while Vice-President JD Vance outlined plans for a new critical minerals trading zone.

“Over time, our goal within that zone is to create diverse centres of production, stable investment conditions, and supply chains that are immune to external disruptions,” Vance said.

Jaishankar later said that the summit was the main reason for his US visit and confirmed India’s support for the Forum on Resource, Geostrategic Engagement (FORGE), an initiative unveiled at the meeting.

“The discussion was very good. Critical minerals is a very important subject. The US has been a partner for some years,” Jaishankar told ANI.

Addressing the summit, he highlighted the risks of excessive concentration in supply chains and stressed the need for international cooperation to “de-risk” critical mineral sourcing.

What is the Critical Minerals Trading Bloc?

The 2026 Critical Minerals Ministerial is a Trump administration initiative aimed at reshaping the global market for critical minerals and rare earths, a sector currently dominated by China.

China leads the production of 30 minerals classified as critical by the US Geological Survey. It accounts for about 70% of global rare earth mining and more than 90% of global processing capacity.

“Critical minerals and rare earths are essential for our most advanced technologies and will only become more important as AI, robotics, batteries and autonomous devices transform our economies,” the US State Department said in a statement.

Through this bloc, the US and its partner nations aim to develop secure, diversified and resilient supply chains for strategic minerals.

India’s Push on Rare Earths

The US-led initiative comes shortly after India announced steps to strengthen its domestic rare earths and critical minerals sector.

While presenting the Union Budget 2026–27 on February 1, Finance Minister Nirmala Sitharaman said the government would support mineral-rich states such as Andhra Pradesh, Kerala, Tamil Nadu and Odisha to develop dedicated rare earth corridors.

She also announced the Indian Semiconductor Mission 2.0 to expand chip manufacturing and reduce dependence on China’s semiconductor industry.

At the Washington summit, Jaishankar highlighted India’s efforts through programmes such as the National Critical Minerals Mission and the proposed rare earth corridors.

India’s backing of the US initiative is significant as it follows closely on the heels of the recent India-US trade deal. Under the agreement, US tariffs on Indian imports were reduced to 18% from 50%, strengthening economic ties between the two countries.