India, US hold 6th ministerial commercial dialogue, sign MoU on critical minerals supply chains

Union Minister of Commerce and Industry Piyush Goyal and US Commerce Secretary Gina Raimondo during the signing of an MoU at the 6th India-US Commercial Dialogue/ PTI

On Thursday, Minister of Commerce and Industry Piyush Goyal and US Commerce Secretary Gina Raimondo held the sixth ministerial-level Commercial Dialogue, where they discussed progress in semiconductor supply chains, innovation partnerships, energy networks, and the Indo-Pacific Economic Framework for Prosperity, reported PTI.

According to the report, a day earlier, the two ministers signed a new memorandum of understanding (MoU) to develop and diversify essential minerals supply chains. This agreement aims to harness both countries' strengths to improve resilience in the essential minerals sector.

Key priority areas include defining the equipment, services, policies, and best practices required to support the economic development of essential minerals exploration, extraction, processing, and recycling between the United States and India, the report added.

During the discussion, Goyal and Raimondo praised continued efforts to create resilient, secure, and sustainable semiconductor supply chains. Following the formation of a semiconductor supply chain and innovation collaboration, the US Semiconductor Industry Association and the India Electronics Semiconductor Association undertook a private sector "readiness assessment." This project identifies short-term opportunities while encouraging the long-term development of adjacent semiconductor ecosystems, reported PTI.

The news agency report further stated that the leaders vowed to continue supporting engagement between US and Indian enterprises, encouraging investments, joint ventures, and technological alliances, as well as boosting workforce development that benefits both countries.

They also welcomed the successful roundtables hosted in San Francisco in November 2023 and New Delhi in March 2024, which intended to align both countries' startup ecosystems and strengthen innovative ties, the PTI report stated.

Goyal and Raimondo highlighted the progress made during the EIN Roundtable, which took place in March as part of the renewable EDGE and Environmental Technologies Business Development Mission, which brought 12 US businesses to India to boost renewable energy markets.

The discussions at this roundtable influenced the US-India Strategic Renewable Energy Partnership (SCEP) ministerial conference on September 16, further shaping joint efforts in renewable energy.

Both leaders highlighted significant advancements announced at the virtual IPEF ministerial meeting last month, particularly in improving supply chain resilience through the IPEF Supply Chain Agreement.

They expressed commitment to collaborating in critical areas, including semiconductors, chemicals, and critical minerals, with a focus on batteries and potentially healthcare products, as agreed by the IPEF Supply Chain Council.

Goyal and Raimondo also reviewed joint efforts under the India-US Strategic Trade Dialogue and the Standards and Conformance Cooperation Program (SCCP), discussing future collaboration priorities, particularly in critical minerals.

Looking ahead, they anticipated the US Department of Commerce-led Global Diversity Export Initiative Trade Mission to India in early March 2025, aimed at expanding opportunities for US SMEs owned or led by members of underserved communities.

The two leaders applauded plans to increase the US Department of Commerce's presence in India to around 70 Foreign Commercial Service staff across seven cities. In Bengaluru, where a new US consulate is set to open, a new position will serve as a resource for US and Indian startups and SMEs, advancing plans for an SME Presidents' Forum focused on various business initiatives, including support for women entrepreneurs and integration into global value chains.