India’s economic security faces growing risks from critical mineral and technology dependence, energy imports, and vulnerability of key maritime chokepoints, prompting measures such as energy diversification, strategic reserves, domestic production, critical-mineral initiatives, stronger maritime security, regional cooperation, and strategic partnerships.
News: PM warned that weaponisation of critical resources and strategic sea routes poses risks to India’s economic security.
India’s Vulnerabilities
- Critical Minerals: Import-dependent for 10 critical minerals; risks from restrictions on lithium, cobalt, rare earths etc.
- Technology: Dependence on critical technologies such as semiconductors and advanced defence technologies.
- Energy Security: Around 60% of LPG consumption is imported; ~90% of LPG imports pass through Strait of Hormuz.
- Maritime Trade: Nearly 95% of India’s trade by volume moves through sea routes.
- Key Chokepoints: Strait of Hormuz & Bab-el-Mandeb/Red Sea.
India’s Preparedness
- Energy Diversification: Wider sourcing of crude & LNG.
- Strategic Reserves: Expansion of Strategic Petroleum Reserves – Chandikhol & Padur Phase-II.
- Domestic Energy: Renewables, offshore exploration & Nuclear Energy Mission (100 GW by 2047).
- Critical Minerals: National Critical Mineral Mission for secure supply chains.
- Maritime Security: IFC-IOR, naval deployments & maritime domain awareness to protect SLOCs.
- Regional Cooperation: SAGAR/MAHASAGAR & IONS.
- Strategic Partnerships: FTAs and cooperation with EU, UK, Australia etc.