[Answered] Examine the integration of ‘economic security’ into modern grand strategy as a fusion of economic and foreign policy. Evaluate how the India–US economic statecraft recalibrates India’s strategic autonomy and its ability to navigate a fragmented global world order.

Introduction

Economic security has emerged as national security’s core pillar, with the IMF (2023) noting supply-chain shocks reduced global GDP by 2%. The India–US framework reflects this decisive geoeconomic turn.

Economic Security as the New Grammar of Grand Strategy

1. Conceptual Shift from Globalisation to Securitisation: Economic security signifies the deliberate securitisation of trade, technology, finance and energy, replacing post-1991 assumptions that markets and geopolitics could remain separate.
2. From Efficiency to Resilience: States now prioritise just-in-case resilience over just-in-time efficiency, driven by shocks such as COVID-19, the Ukraine war, and weaponisation of supply chains.
3. Return of Economic Statecraft: As articulated by scholars like Robert Blackwill, economic tools—tariffs, export controls, investment screening—have become central instruments of power projection.

Global Drivers Behind the Fusion of Economics and Foreign Policy

1. Great Power Rivalry and Geoeconomics: The US–China contest has redefined power in terms of manufacturing dominance, critical minerals, semiconductors and AI ecosystems, not merely military strength.
2. Institutionalisation of Economic Security: The G7 Hiroshima Declaration (2023) and the US National Security Strategy (2025) explicitly state that economic security is national security.
3. Technology as a Strategic Chokepoint: Controls on advanced chips, GPUs and dual-use technologies underline how innovation itself has become a battlefield.

India–US Economic Statecraft: Instruments and Intent

1. Supply-Chain Resilience and Friend-Shoring: The joint statement emphasises trusted supply chains in critical minerals, semiconductors and clean energy, reducing exposure to non-market policies of third countries, notably China.
2. Investment Screening and Export Controls: Cooperation on inbound and outbound investment reviews reflects convergence on preventing technology leakage, aligning India with advanced-economy regulatory norms.
3. Strategic Bargains Beyond Commerce: India’s expanding energy and defence purchases from the US represent geoeconomic anchoring, binding American industrial interests to India’s growth trajectory.

Recalibrating Strategic Autonomy: Constraint or Capability?

1. From Normative Autonomy to Functional Autonomy: Traditional non-alignment focused on political distance; contemporary autonomy is measured by integration into multiple supply chains and technological capacity, not neutrality alone.
2. Leverage Through Economic Strength: Proponents argue that deeper India–US economic ties enhance autonomy by boosting India’s manufacturing base, innovation ecosystem and market access, consistent with the Atmanirbhar Bharat vision.
3. Persistent Risks to Policy Space: However, over-alignment may constrain India’s choices within BRICS+, Russia relations, and digital trade governance, risking middle-power vassalisation.

India in a Fragmented World Order: Opportunities and Risks

1. Navigating Bloc Politics: The global economy is fragmenting into competing techno-economic blocs; India’s challenge is to practise multi-alignment without strategic drift.
2. Domestic Reform as External Strategy: Reports by the World Bank stress that India’s success depends less on diplomacy alone and more on deep domestic reforms, logistics efficiency and technological upgrading.
3. Balancing Security and Development: Excessive securitisation can raise costs for MSMEs and consumers, highlighting the need to balance national security with inclusive growth.

Conclusion

As President A.P.J. Abdul Kalam envisaged in India 2020, national strength flows from economic and technological capability; India’s challenge is wielding economic statecraft without surrendering strategic choice.