New Delhi. India and America have signed a major agreement on Critical Minerals and Rare Earths, giving new strength to their strategic partnership. This deal is being considered very important at the global level, because it can have a direct impact on China’s long-standing dominance.
This agreement has come at a time when the world is concerned about the secure supply of minerals essential for semiconductors, electric vehicles, clean energy and modern defense technologies. It is believed that with this partnership, both the countries are taking big steps towards reducing their dependence on China.
What is this strategic agreement?
This agreement focuses on strengthening the entire supply chain of critical minerals and rare earth elements. Under this, India and America will work together in areas like mining, processing, recycling and investment. The agreement was signed by Foreign Minister S. This happened in the presence of Jaishankar and US Secretary of State Marco Rubio.
Why did this deal increase China’s concern?
China is considered to have dominance in the processing of rare earths and important minerals in the world. In such a situation, if India and America together prepare an alternative supply chain, then China’s hold in the global market may weaken. This is the reason why this agreement is being considered very important not only from the economic but also from the geopolitical point of view.
Technology and defense sector will benefit
This partnership can give both countries a big edge in future technologies. The availability of resources required for semiconductor manufacturing, electric vehicle industry, renewable energy and defense production will become more secure. Along with this, this agreement will also help in bringing stability in the supply chain and reducing risks in the global market.
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