India-US Trade Deal: On February 5, 2026, India solidified its strategic partnership with the United States by joining the US-led Critical Minerals Ministerial. This move aims to counter China’s overwhelming dominance in the critical minerals market. The summit, held in Washington D.C., was attended by External Affairs Minister S. Jaishankar, who emphasized India’s commitment to the Forum on Resource, Geostrategic Engagement (FORGE).
US Secretary of State Marco Rubio and Vice-President JD Vance spearheaded the summit, outlining plans for a new trading zone designed to enhance production diversity and stabilize investment conditions. Vance highlighted the necessity of creating supply chains resilient to external disruptions, a sentiment echoed by Jaishankar.
The summit follows a significant trade deal between India and the US, reducing tariffs on Indian imports from 50% to 18%. This agreement aligns with India’s recent initiatives, including the National Critical Minerals Mission and the Indian Semiconductor Mission 2.0, aimed at challenging China’s semiconductor industry dominance.
China currently dominates the production of 30 critical minerals and controls over 90% of global rare earth processing capacity. The US and its partners aim to build secure, resilient supply chains for these essential resources, vital for technologies like AI and robotics.
India’s involvement in this initiative marks a pivotal step in its foreign policy, strengthening ties with the US while addressing global supply chain vulnerabilities. Future meetings are expected to further solidify this alliance, potentially reshaping the geopolitical landscape.
Published in SouthAsianDesk, February 5th, 2026
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