Source: The Indian Express | Author: Dhiraj Nayyar
Context: India’s place in emerging geopolitics and geo-economics

0.1 Why this article matters

0.1.1 Global power today is shaped not only by military strength, but by technology, energy, and critical minerals.
0.1.2 Countries that control semiconductors, artificial intelligence, and mineral supply chains gain leverage in global negotiations.
0.1.3 The article explains why India is currently absent from this new global power table.

0.2 India’s exclusion from US-led supply chain initiative

0.2.1 The US launched a Pax Siliconica initiative to secure supply chains in semiconductors, energy, AI, and critical minerals.
0.2.2 Member countries include the US, Japan, South Korea, Singapore, the UK, the Netherlands, Israel, the UAE, and Australia.
0.2.3 India was excluded despite the initiative’s goal of reducing dependence on China.

0.3 Why India was not included

0.3.1 Each participating country contributes either advanced technology capability or critical mineral resources.
0.3.2 India currently lacks cutting-edge semiconductor manufacturing and secured mineral supply chains.
0.3.3 Even invited “guest” countries such as Canada (mineral resources) and Taiwan (semiconductor dominance) bring clear strategic strengths.

0.4 Long neglect of research and development (R&D)

0.4.1 India spends only 0.6–0.7% of GDP on R&D.
0.4.2 This level of spending has remained almost unchanged for two decades.
0.4.3 In comparison, the US spends around 3%, China about 2.5%, and South Korea and Israel nearly 5% of GDP on R&D.
0.4.4 Low investment has prevented India from becoming a major innovation and technology hub.

0.5 Exception: India’s space sector

0.5.1 Space technology is the only area where India has built globally competitive, cutting-edge capability.
0.5.2 This success demonstrates what state backing and sustained investment can achieve.
0.5.3 Similar commitment has not been extended to other high-technology sectors.

0.6 India’s mineral paradox

0.6.1 India possesses geological formations comparable to Australia, one of the world’s leading mining economies.
0.6.2 Despite this, only 25–30% of India’s mineral potential has been explored.
0.6.3 Vast quantities of mineral wealth remain undiscovered underground.

0.7 Heavy import dependence despite mineral wealth

0.7.1 India imports about 90% of its oil and gas requirements.
0.7.2 Nearly 99.9% of gold and 95% of copper ore are imported.
0.7.3 For critical minerals such as lithium, import dependence is 100%.
0.7.4 Mining contributes only 2% to India’s GDP, far below levels seen in comparable economies.

0.8 Policy focus problem in the minerals sector

0.8.1 Policy attention has centred on allocation mechanisms such as first-come-first-serve and auctions.
0.8.2 The overriding objective has been maximising government revenue, not encouraging exploration.
0.8.3 Such an approach works only for already discovered deposits, not for hidden or deep reserves.

0.9 Why private sector participation is essential

0.9.1 The government alone lacks the capacity to explore deep and undiscovered mineral deposits.
0.9.2 Private firms will invest only if they can commercially benefit from successful discoveries.
0.9.3 Excessive state control reduces risk-taking, innovation, and long-term investment.

1.0 Geopolitics has become geo-economics

1.0.1 Global power today depends on supply chains, production capacity, and market control.
1.0.2 To remain relevant, India must act as a producer and supplier, not merely as a large population.
1.0.3 Military strength or diplomacy alone cannot compensate for weak economic capability.