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OPINION NOVEMBER 28, 2025 | The Indian Eye 11

the world. Its economy is growing at
6 per cent and it will soon become the
third-largest economy in the world af-
ter the US and China. Hence, its rise
won’t be unopposed, and she will face
hurdles posed by global powers. The
challenges for India in the context of
economic warfare include its heavy
reliance on crude oil imports. There
is an essential dependence on China
for rare earth elements, critical min-
erals, fertilizers, chemicals and phar-
maceutical intermediates.
India is vulnerable to maritime
chokepoints and to disruptions in
shipping lanes. Despite the high vol-
ume of sea-borne trade, rising freight
and container costs, and the absence
of Indian-owned container ships,
these are concerns. There is heavy
reliance on defense imports, such as
marine engines, aero engines and sen- India must diversify critical supply chains by securing partnerships and incentivizing domestic production (File photo)
sors. Aircraft and Helicopters such as
the P-8I, MH-60R, Apache, Chinook, has authorized international trade framework to safeguard its strategic Strategic reserves need to be created
and others are dependent on the US settlement in Indian rupees for bilat- autonomy. It could, for instance, es- to insulate the economy from global
for maintenance and spare parts. eral rupee-trade corridors, e.g., with tablish a National Economic Security shocks. India must draw up a national
Exposure to the US dollar and the Russia and the UAE. In addition, Council (NESC) under the National roadmap for the exploration, refining
SWIFT payment system is a vulnera- India has renewed its Bilateral Swap Security Council Secretariat to more and recycling of critical minerals and
bility in a sanctions scenario. There is Arrangement with Japan (US$ 75 bil- effectively integrate economic aspects also incentivize these activities.
growing vulnerability to cyberattacks lion ceiling) and maintains substantial into national security analysis. India
on critical infrastructure such as ports, foreign-exchange reserves, thereby must adopt a technology acquisition
power plants and stock exchanges. creating buffers against sanctions. and protection policy for technology CONCLUSION
India has signed upstream ex- conomic warfare has re-
India has also taken steps to
ploration and processing pacts with ensure energy security. India is the scouting, transfer and protection. It drawn the global battlespace
should focus on dual-use technolo-
Japan and Australia to counter the third-largest consumer of crude oil gies, critical minerals processing and Eby shifting competition from
rare-earth and battery-metal choke and the fourth-largest importer of IP protection in strategic sectors. the military field to supply chains,
points. It is also pushing the domestic LNG worldwide. Hence, safe and se- Periodic audits of all vital suppli- payment systems, energy flows and
magnet/REE manufacturing and re- cure flow of energy is its top priority ers must be undertaken to support critical technologies. India’s path to
cycling. India has pushed investments and essential for protecting its nation- traceability and redundancy, similar resilience will lie in reducing external
in ports, waterways and shipbuilding al interests. It has diversified its crude to US/EU supply-chain traceability dependencies, investing in research,
through the Sagarmala 2.0. It will oil sources to avoid price fluctuations, mandates. The Ministry of Defense and asserting leadership in emerging
strengthen the supply chain control geopolitical risks and supply chain dis- has published five positive indigeni- domains such as semiconductors, AI
and reduce dependence on foreign ruptions. It has sourced energy from zation lists to promote import substi- and clean energy. India must merge
shipping. the US, Russia, the Middle East and tution. economic security into its national
India’s experience with sanctions security strategy. Strategic auton-
The same should continue with
and technology denial shows that they Africa. It has built strategic energy additions and a timeframe for critical omy will stem from technological
reserves and signed long-term LNG
can be disruptive initially but can lead contracts with Qatar and the UAE. technologies, such as defense avia- self-reliance and industrial capability.
to long-term strategic independence. India aims to have 500 GW of renew- tion, and with the drawing up of strict The struggle ahead will take place in
India was hit with sanctions after the able energy capacity by the year 2030. timelines/roadmaps. boardrooms as well as on battlefields,
nuclear weapons tests in 1974 and Digital payment systems like UPI Cyber vulnerability assessments and India needs to be ready to con-
1998. It resulted in difficulty getting and RuPay provide more economic front the same.
access to atomic fuel, manufacturing freedom. India is in the process of and audits must be conducted regu-
tools, satellite parts and high-perfor- establishing free trade agreements larly for ports, power grids, stock ex- Cdr Shailendra Gavade is presently
mance technology. But India demon- (FTAs) with friendly countries. In changes and bank payment systems. undergoing the 32nd Naval Staff and
strated strength by building its own ca- addition, it should be able to do busi- India must accelerate the internation- Technology Management Course (NST-
pabilities, expanding institutions like ness with its FTA partners in Rupees al roll-outs of UPI/RuPay and have a MC) at Naval War College, Goa.
DRDO and ISRO, and forming new and reduce dependency on the dollar. roadmap for global expansion. India
collaborations with Russia, France Thus, India can use its financial might must build/co-develop an alternative Views expressed are of the author and
and Israel. The sanctions proved less to gain geopolitical influence by tying to SWIFT, akin to what Russia and do not necessarily reflect the views of
effective as India established itself as its economic and trade policies to its China have done. It will enhance the the Manohar Parrikar IDSA or of the
a reliable nuclear and technological strategic goals. resilience of critical economic and Government of India.
power. defense supply chains. Also, it could
India demonstrated that sanc- reduce foreign-currency exposure and The full version of this article first
tions can slow progress but also en- RECOMMENDATIONS provide cost efficiencies for specific appeared in the Comments section of
courage creativity, resilience and ven as India has taken mul- corridors and partners. the website (www.idsa.in) of Manohar
strategic independence by turning tiple steps to address vulner- India must diversify critical supply Parrikar Institute for Defense Studies
pressure into long-term strength. Fur- Eabilities, it must continue to chains by securing partnerships and and Analyses, New Delhi, on November
thermore, the Reserve Bank of India strengthen its multi-dimensional incentivizing domestic production. 20, 2025

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