Economic Security and Resilience Review
The ongoing military conflict involving the United States and Israel on one side and Iran on the other is exerting significant pressure on the global economic landscape. India, with its extensive economic linkages across the Gulf region-particularly in energy-faces notable exposure. This issue of examines the implications of these developments, including the disruptions arising from the virtual closure of the Strait of Hormuz, and outlines the policy and other operational measures being undertaken by the Government of India.
Amid intensifying strains on global trade-marked by unilateral tariff actions, rising protectionism, and the adverse effects of overcapacity and non-market policies-the WTO Ministerial Meeting held in Yaoundé (March 26–29) presented an opportunity to advance reform and corrective action. However, the meeting concluded without substantive outcomes, reflecting persistent divergences among members. This issue reviews these developments and what may lie ahead.
This issue also examines the developments sub-sequent to the U.S. Supreme Court’s ruling that curtailed the use of tariffs under the International Economic Emergency Powers Act (IEEPA) without explicit Congressional approval. Notably, the U.S. administration has initiated investigations under Section 301(b) of the Trade Act against several countries, including India, potentially enabling the reimposition of tariffs. The implications for the recently agreed India-U.S. bilateral trade framework are also considered.
The visit of the Canadian Prime Minister Mark Carney to India during the month marked a significant step toward revitalizing bilateral ties following the setbacks since 2023. The outcomes included tangible advances for India’s economic security, notably in long-term uranium supply, potential LNG and PNG exports, cooperation in critical minerals and renewable energy, and an accelerated timeline for concluding CEPA negotiations.
Similarly, the visit of Japanese Prime Minister Sanae Takaichi to the United States yielded a series of initiatives focused on supply chain resilience, critical minerals, and energy infrastructure. Of particular relevance to India is the proposed plurilateral initiative on critical minerals, which could involve coordinated trade policies and mechanisms such as border-adjusted price floors.
Finally, this issue notes the conclusion of the long-pending FTA negotiations between Australia and the European Union, underscoring the EU’s broader strategy to diversify trade partnerships and secure supply chains. This follows a series of recent EU agreements, including those with MERCOSUR, Indonesia, and India
To read this issue please click ESRR, Vol. IV, Issue 3.
