Introduction: Pax Silica and India’s Strategic Entry

Pax Silica is a US-led initiative launched in December 2025 to secure and innovate the global silicon and semiconductor supply chain critical for artificial intelligence (AI) technologies. The founding members include Australia, Israel, Japan, South Korea, Singapore, the UK, the Netherlands, and the UAE, collectively controlling over 70% of global semiconductor production capacity. India joined Pax Silica in February 2026 during the AI Impact Summit in New Delhi, aiming to reduce supply chain vulnerabilities and boost its digital economy projected to exceed USD 200 billion by 2027 (NASSCOM).

While participation promises access to advanced technology ecosystems and strategic partnerships, concerns have emerged about digital colonialism—where India’s dependence on Western-controlled digital infrastructure and data governance frameworks could deepen, limiting its digital sovereignty and industrial autonomy.

Pax Silica: Objectives and Strategic Framework

The initiative’s core objective is to build a resilient, innovation-driven silicon supply chain by securing critical minerals, semiconductor manufacturing, and software platforms foundational to AI. It aims to reduce coercive dependencies on single sources and align partner nations on technology standards and supply chain security.

• Focus on strategic stacks: raw materials, chip fabrication, software, and AI platforms.
• Pooling subsidies and investments: The US CHIPS Act (2022) allocates USD 52 billion to domestic chip manufacturing; India’s Production Linked Incentive (PLI) scheme dedicates INR 76,000 crore (~USD 10 billion) for semiconductor capacity expansion.
• Governance coordination: US Department of Commerce leads Pax Silica; India’s NITI Aayog and MeitY coordinate policy and regulatory frameworks.

Digital Colonialism: Definition and Mechanisms

Digital colonialism describes a system where developed countries or multinational corporations dominate digital infrastructure, data flows, and technology standards, effectively controlling the digital ecosystems of less powerful states. Unlike classical colonialism, control is exercised through data ownership, algorithms, and platform governance rather than territorial conquest.

• Dependency on foreign platforms and cloud services entrenches technological asymmetry.
• Data extraction and cross-border data flows often occur under terms favoring Western entities.
• Standard-setting bodies and intellectual property regimes reinforce control over emerging technologies.

India’s Legal and Constitutional Framework on Digital Sovereignty

India’s constitutional and legal provisions provide a framework to regulate digital trade, data protection, and sovereignty:

• Article 246 (Union List) empowers Parliament to legislate on trade and commerce, including digital trade.
• Information Technology Act, 2000: Section 43A mandates compensation for failure to protect sensitive data; Section 72A criminalizes breach of confidentiality and privacy.
• Personal Data Protection Bill, 2019 (pending) seeks to regulate cross-border data flows and enforce data localisation, asserting data sovereignty.
• Supreme Court judgment in Justice K.S. Puttaswamy (Retd.) vs Union of India (2017) upheld the right to privacy as a fundamental right, reinforcing legal grounds for data protection and sovereignty.

Economic Dimensions: Semiconductor Market and India’s Position

The global semiconductor market was valued at USD 726 billion in 2023 (Statista). India’s semiconductor import bill reached USD 24 billion in FY 2023-24 (Ministry of Commerce), with domestic manufacturing capacity below 1% of global output. This stark dependency underpins India’s strategic interest in Pax Silica but also highlights vulnerabilities.

• India’s AI and digital economy sectors are projected to exceed USD 200 billion by 2027 (NASSCOM), reliant on secure semiconductor supply chains.
• The US CHIPS Act (2022) channels USD 52 billion in subsidies to domestic chip manufacturing, intensifying global competition.
• India’s PLI scheme allocates INR 76,000 crore (~USD 10 billion) to semiconductor manufacturing to reduce import dependency.

Institutional Roles in India’s Digital and Semiconductor Strategy

• NITI Aayog: Coordinates AI strategy and policy formulation.
• Ministry of Electronics and Information Technology (MeitY): Regulates digital infrastructure and promotes domestic technology development.
• National Security Council Secretariat (NSCS): Provides strategic oversight on digital sovereignty and security.
• US Department of Commerce: Leads Pax Silica initiative and coordinates allied technology policies.
• International Telecommunication Union (ITU): Influences global digital standards impacting India’s technology alignment.

Comparative Perspective: China’s Digital Silk Road vs India’s Pax Silica Approach

China’s Digital Silk Road exemplifies an alternative approach prioritizing indigenous supply chains, digital infrastructure, and data as a strategic asset. As of 2025, China controls 35% of global semiconductor manufacturing capacity, compared to India’s less than 1% (China Ministry of Industry and Information Technology, 2025). This enables China to exert greater digital autonomy and reduce foreign dependencies.

Risks and Challenges: Digital Colonialism Embedded in Pax Silica

India’s participation in Pax Silica risks deepening digital colonialism through:

• Technological dependency: Dominance of Western standards and platforms may limit India’s ability to develop autonomous AI ecosystems.
• Data sovereignty conflicts: Cross-border data sharing norms under Pax Silica may clash with India’s data localisation policies, undermining privacy and control.
• Policy incoherence: Lack of integrated strategy between national security, industrial incentives, and data governance weakens India’s negotiating position.
• Economic asymmetry: Subsidy disparities (US vs India) and limited domestic capacity constrain India’s leverage.

Way Forward: Balancing Cooperation and Sovereignty

• Accelerate domestic semiconductor manufacturing through enhanced PLI implementation and technology transfers.
• Harmonize Personal Data Protection Bill provisions with international frameworks while safeguarding data sovereignty.
• Strengthen institutional coordination among NITI Aayog, MeitY, and NSCS to align security, industrial, and data policies.
• Engage proactively in Pax Silica standard-setting to influence norms favorable to India’s interests.
• Explore complementary partnerships beyond Western alliances to diversify technology sources.

Jharkhand & JPSC Relevance

• JPSC Paper: Paper 3 (Science and Technology), Paper 2 (Governance and International Relations)
• Jharkhand Angle: Jharkhand’s mineral resources, including silicon and rare earths, are crucial for semiconductor supply chains, linking local mining to national digital strategies.
• Mains Pointer: Frame answers by connecting Jharkhand’s mineral wealth to India’s semiconductor ambitions and the risks of external dependency through initiatives like Pax Silica.