In the new world order, economic policy is also foreign policy, Pg12

Key Highlights:

• The India-US joint statement emphasizes economic security to strengthen supply chains and address non-market policies.
• Economic statecraft is returning to the center of grand strategy, with trade, technology, and capital flows defining the strategic balance.
• The Covid-19 crisis and Russia's invasion of Ukraine exposed the fragility of global supply chains, prioritizing economic security.
• The 2025 National Security Strategy of the US affirms that economic security is fundamental to national security.
• India is focusing on free-trade agreements with Western partners, recognizing the complementarity with Western economies.

Detailed Insights:

• The separation of economics and security eroded in the 2010s due to backlash against globalization and tensions between the US, China, and Russia.
• Donald Trump challenged economic entanglement with China, identifying the trade deficit as a national vulnerability.
• Joe Biden embraced restoring domestic manufacturing, reducing dependence on rivals, and rebuilding technological dominance.
• Russia's natural resources give it relevance, with potential shifts in geopolitical reordering influencing India's foreign policy.
• India's focus on free trade agreements with Western partners marks a pivot after years of looking east.
• India's participation in US initiatives like Pax Silica and the critical minerals group reflects a strategic judgment in the US-China geoeconomic contest.
• Sustained India-US cooperation depends on India's economic reform and technological modernization at home.

Key Concepts Involved:

• Economic Security: Measures taken by a country to protect its economic interests and stability.
• Supply Chain Resilience: The ability of a supply chain to withstand and recover from disruptions.
• Geoeconomics: The intersection of geopolitics and economics, concerning the use of economic tools to achieve geopolitical goals.