In News:

• The sixth Commercial Dialogue took place in Washington on October 4, 2024, led by Indian Union Minister of Commerce Piyush Goyal and U.S. Commerce Secretary Gina Raimondo.
• MoU Signing: A day prior, the leaders signed a memorandum of understanding (MoU) aimed at expanding and diversifying critical minerals supply chains to enhance resilience.
• Focus Areas:
  • Identification of equipment, services, policies, and best practices for the development of U.S. and Indian critical minerals, covering:
    • Exploration
    • Extraction
    • Processing and refining
    • Recycling and recovery
• Context: This agreement follows China's export restrictions on gallium and germanium, critical for the semiconductor industry, and its ban on technology related to rare earth magnets and critical materials extraction.
• Strategic Goals:
  • Promote open supply chains, technology development, and investment flows for green energy.
  • Explore collaboration with other mineral-rich countries, particularly in Africa and South America.
• Progress on Semiconductor Supply Chains:
  • Continued efforts to establish resilient semiconductor supply chains since the previous MoU.
  • Completion of a "readiness assessment" by the U.S. Semiconductor Industry Association and India Electronics Semiconductor Association.
  • Commitment to foster investments, joint ventures, and technology partnerships.
• Innovation Handshake: Success of roundtables in San Francisco and New Delhi aimed at enhancing innovation ecosystems and startup collaboration.
• Strategic Clean Energy Partnership: Discussions from the EIN Roundtable in March 2024 informed the U.S.-India Strategic Clean Energy Partnership meeting.
• IPEF Supply Chain Agreement: Significant progress noted in the IPEF ministerial meeting, focusing on semiconductors, chemicals, and critical minerals, particularly batteries and healthcare products.
• Future Collaborations:
  • Focus on expanding U.S. Department of Commerce presence in India with approximately 70 Foreign Commercial Service staff.
  • Plans for a U.S. trade mission to India in March 2025 aimed at supporting U.S. SMEs owned by underserved communities.
• Domestic Solar Manufacturing Protection: India reinstated the Approved List of Models and Manufacturers (ALMM) order to protect local solar PV module production against cheaper imports from China.
• Economic Context:
  • The Economic Survey 2023-24 highlights China's expanding manufacturing trade surplus and its restrictive actions affecting India's access to solar equipment.
  • India’s Production Linked Incentive (PLI) schemes have invested over $4.5 billion to bolster clean energy manufacturing but require additional policies to safeguard these investments.