US President Donald Trump's Stance on Multilateralism
US President Donald Trump has shown little favor towards multilateral partnerships, often expressing disagreement or indifference towards entities such as the UN, NATO, G20, and G7. However, the recent US-led initiative, Pax Silica, aims to secure supply chains in critical minerals, energy, semiconductors, and AI, marking a significant move.
Pax Silica Initiative
The Pax Silica initiative involves nine countries: the US, Japan, South Korea, Singapore, the UK, the Netherlands, Israel, the UAE, and Australia. It is implicitly directed at countering China's influence.
India's Exclusion
- India's exclusion from the initiative highlights its lack of contribution in critical areas of high technology, energy, and minerals.
- India's R&D expenditure is only 0.6-0.7% of its GDP, stagnant for two decades, compared to approximately 3% by the US, 2.5% by China, and nearly 5% by South Korea and Israel.
India's Technological and Mineral Stagnation
- India has not significantly advanced as a nation of product or innovation, except in the space sector.
- In minerals, India has explored only 25-30% of its geological potential despite being geologically rich.
- India heavily imports oil, gas, gold, copper ore, coal, and bauxite, with import dependency on critical minerals like lithium at 100%.
- The mining sector contributes only 2% to GDP, compared to 8-10% in countries with comparable geology.
Policy Approach and Economic Potential
India requires a policy shift to allow private sector involvement in exploration, offering the freedom to monetize discoveries without government interference. To be relevant in geopolitics and geo-economics, India could leverage its market, though current politics and policy reform challenges lean towards protectionism.
Conclusion
India has long relied on its potential to be recognized globally; however, the current geopolitical landscape demands actual contributions and deliveries. With urgency and reform, India's time at the global high table can be accelerated.
