Economic Security and Resilience Review

This month’s review draws attention to the renewed emphasis on economic security and resilience in India’s policy discourse, alongside a widening of its economic engagement with strategic partners.

Speaking at a public forum, Finance Minister Nirmala Sitharaman described global uncertainty as a “standing condition” and called for greater autonomy in building resilient supply chains, deeper domestic capabilities in strategic inputs, and stronger private-sector investment in R&D. She also highlighted China’s non-tariff barriers as a major obstacle to expanding Indian exports, notwithstanding improving diplomatic relations.

Swiss President Guy Parmelin visited India, coinciding with the first anniversary of the India-EFTA Trade and Economic Relationship Agreement. Poland’s Prime Minister Donald Tusk visited India with a substantial business delegation, with cooperation in critical minerals, clean technologies, mining, coal gasification and advanced manufacturing receiving attention. Meanwhile, India-Canada CEPA negotiations progressed alongside the exchange of high-level ministerial visits and the conclusion of several commercial and investment agreements.

Developments in India-US relations presented a mixed picture. President Trump’s agreement to purchase Russian diesel and his waiver of additional duties on countries importing Russian oil provided some relief to India. US Secretary of State Marco Rubio’s visit highlighted opportunities for energy cooperation. However, the indefinite suspension of five major Indian technology companies from sponsoring permanent residence applications in the US raised concerns about talent mobility and the future of technology partnerships.

Elsewhere, the EU-China understanding to restrain Chinese hybrid car exports could signal greater resort to negotiated export restraints in addressing trade imbalances. The European Parliament’s proposal for a Critical Raw Materials Centre, modelled on Japan’s JOGMEC, reflected growing European interest in strengthening critical minerals sourcing and  strategic supply chains. The EU-Canada summit further advanced cooperation on critical minerals, stockpiling, digital trade and resilient supply chains, along with commitments by both sides to forge much closer ties.

Finally, China’s new export controls on tunnel boring machines and related technologies underscored India's vulnerability to strategic supply disruptions, with potential implications for major infrastructure projects. These developments reinforce the need for India to accelerate domestic manufacturing capabilities in critical technologies while diversifying external sources of supply.

To read this issue please click ESRR, Vol. IV, Issue 10.