India's Minister of Commerce and Industry Piyush Goyal said China's dominance in semiconductor and critical-minerals supply chains is a wake-up call for India.

This shift in strategy highlights the risks of over-reliance on a single source for essential technology. By diversifying its supply chain, India aims to protect its economic security and establish itself as a reliable alternative in the global market.

Speaking in an interview with NDTV, Goyal said that recent disruptions—specifically China's border shutdowns during the COVID-19 pandemic—revealed the vulnerability of global trade. He said that the current situation necessitates the creation of a more robust internal infrastructure to avoid similar future shocks.

"China's dominance in critical minerals is a threat to India and Japan," Goyal said.

To address these vulnerabilities, India has increased its cooperation with international allies. Goyal recently attended the inaugural US-India Critical Minerals Security Taskforce meeting in Washington. The meeting included 17 companies [1] focused on securing the supply of minerals essential for high-tech manufacturing.

This collaborative effort is part of a broader push to ensure that the transition to green energy and advanced electronics is not hindered by geopolitical tensions. Goyal said that India is emerging as a trusted global partner in this effort.

"We must build a resilient semiconductor and critical-minerals ecosystem, and India is emerging as a trusted global partner," Goyal said.

Building this ecosystem requires significant investment in mining, processing, and fabrication. The minister said that the goal is to move beyond simple consumption and instead lead in the production of high-value components.

“China's dominance in critical minerals is a threat to India and Japan.”

India's push for supply chain resilience represents a strategic pivot toward 'friend-shoring,' where trade is prioritized with political allies to mitigate the risk of economic coercion. By partnering with the U.S. and Japan, India is attempting to break the monopoly China holds over rare-earth elements and semiconductors, which are critical for the military, automotive, and telecommunications sectors.