Economic Security in India-US Relations
The concept of economic security has become central in recent geopolitical strategies, as highlighted by a paragraph in the India-US joint statement. This idea marks the resurgence of economic statecraft at the heart of grand strategy, intertwining trade, technology, and supply chains with military power.
Geopolitical Context
- Post-1991, economics and security were seen as separate domains due to globalisation.
- Since the 2010s, strategic tensions between major powers have blurred these lines.
- Donald Trump's presidency highlighted economic vulnerabilities, initiating a shift towards economic security.
Impact of Recent Events
- The Covid-19 pandemic and Russia's invasion of Ukraine exposed global supply chain fragilities.
- By 2023, economic security had replaced globalisation as a top priority for the G7.
US Economic Security Strategy
The current US strategy under Trump involves restructuring global economic and technological orders, affecting both adversaries and allies, including India.
- Despite Russia's smaller GDP, its resources make it a significant player in this landscape.
- There are efforts, like a proposed $12-trillion partnership, to reduce Russia's dependence on China.
India's Position
- India faces choices between US market access and discounted Russian oil.
- There's a shift in Indian foreign policy towards free-trade agreements with Western nations, acknowledging economic complementarity.
- India's participation in US initiatives like Pax Silica signifies its strategic alignment against China's dominance.
Challenges Ahead
- The volatile nature of US policies and dynamic geoeconomic relationships necessitate continuous adjustments in India's foreign economic policy.
- India's success in the evolving global order hinges on domestic economic reforms and technological advancements.
This strategic focus reflects a deeper economic convergence between India and the US, but transforming this into sustained cooperation remains complex.
