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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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