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Pax Silica to facilitate private sector partnerships; focus on incentives over govt funds; India key to AI and supply chain push, say US officials

The other point is instead of using taxpayer dollars to make investments under Pax Silica, we're looking at incentives, the US officials replied to Moneycontrol.

February 20, 2026 / 16:00 IST
Union Minister for Electronics and Information Technology Ashwini Vaishnaw, second right, with US Ambassador to India Sergio Gor, left, and others, during an event announcing India joining the Pax Silica initiative, in New Delhi.
Snapshot AI
  • Pax Silica to enhance mineral supply through private sector partnerships
  • India joins US-led Pax Silica, focusing on AI and supply chains
  • Initiative prefers incentives to taxpayer-funded investments

Pax Silica, the framework aimed at strengthening critical minerals cooperation and supply chain resilience, is designed to function beyond a traditional government-to-government structure, Under Secretary of State for Economic Affairs Jacob Helberg said on February 20. The initiative will emphasise private sector participation and market-driven mechanisms rather than relying on direct taxpayer-funded investments, he said.

Speaking at a select media briefing, Helberg outlined the operating philosophy behind Pax Silica while responding to a question by Moneycontrol on how countries would share responsibility under the framework.

Not just a government platform

“So, in terms of shared responsibility, one of the things that makes Pax Silica effective is that it's not just a G2G platform. It's also a platform that allows businesses to forge partnerships, private sector to private sector,” Helberg told Moneycontrol.

He suggested that enabling direct commercial partnerships would be central to building resilient critical mineral supply chains.

Incentives over taxpayer-funded investments

Helberg also clarified the administration’s investment philosophy underpinning the initiative.

“The other point is instead of using taxpayer dollars to make investments, we're looking at incentives. And so, the Trump administration through deregulation, through energy abundance, has put in place powerful incentives that allow the private sector to lead,” he said.

India formally joined Pax Silica on February 20, the US-led strategic alliance which is focused on strengthening resilient supply chains for critical minerals and advancing artificial intelligence capabilities.

Industry-led supply chain approach

Helberg emphasised that Pax Silica reflects Washington’s preference for industry-driven cooperation rather than state-led industrial models.

“Part of the spirit of the Trump administration is we believe in industry and we believe in markets. And so, we're not trying to replicate private industry in-house. We want to help facilitate private sector partnerships that allow us to secure a supply chain through things like offtake agreements and the rest,” he said.

India’s role in AI and supply chains

US Ambassador to India Sergio Gor described India as a central partner in technology and industrial cooperation linked to Pax Silica and emerging technologies such as artificial intelligence.

“We're looking for initiatives where the United States and India can work together. And Pax Silica leads at that. AI leads at that. The fact that we're coming here with a message to India that our stacks, our abilities, our AI technology is something that we want to work with Indian companies with. We're not offering that to everyone around the world. It's something that we bring especially here to this place,” Gor said.

“India, US are natural partners. AI is here. AI is here to stay. We are working together with India, we're creating incredible opportunities for both sides,” Gor said.

Helberg linked India’s capabilities to broader supply chain resilience objectives under Pax Silica.

“Pax Silica does not follow typical geopolitical geometries. Pax Silica is a coalition of capabilities. India is the country that has the world's deepest bunch of talent. India will be a key contributor to helping us amortise R&D costs through scale,” he said.

“Scale is key to competitiveness, and we look forward to working with India to strengthen our share of supply chains,” Helberg added.

Meghna Mittal
Meghna Mittal Deputy News Editor at Moneycontrol. Meghna has experience across television, print, online and wire media. She has been covering the Indian economy, monetary and fiscal policies, Finance and Trade ministries. She tweets at @Meghnamittal23 Contact: meghna.mittal@nw18.com
first published: Feb 20, 2026 04:00 pm

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