Economic Security and Resilience Review
Economic security has increasingly assumed an important role in the formulation of domestic trade and economic policies, particularly among major economies. This trend was highlighted by the new US National Security Strategy 2025 released on December 4, which was framed largely around the country’s own national economic security and hemispheric objectives. In pursuit of these goals, access to the U.S. market - along with the threat of higher tariffs - is increasingly being deployed as a policy lever, a shift that has begun to disrupt established global trade rules and practices.
In the same vein, U.S. proposals for reform of the World Trade Organisation, also released in December, signal a reduced emphasis on multilateralism, with even foundational principles such as most-favoured-nation treatment being questioned. The proposals envisage a future trade architecture built more around plurilateral arrangements, coupled with greater latitude for members to invoke security considerations when adopting trade measures.
This issue examines these proposals in some detail, and assesses their broader implications, including for India.
Another notable development during the month was the launch of the PAX Silica initiative, a nine-member grouping led by the United States, aimed at building a secure, prosperous, and innovation-driven silicon supply chain. The absence of the European Union and India from this initiative may point to the preferences likely to shape future high-technology and supply-chain cooperation under the current U.S. administration. This contrasts sharply with the Biden-era Indo-Pacific Economic Forum, which had sought to address supply-chain resilience through a more inclusive approach.
Several developments of relevance to India’s economic security are covered in this issue. The state visit of President Vladimir Putin to India on December 4-5, 2025, yielded outcomes of significance for India’s strategic and economic interests. In addition, India finalised two free trade agreements during the month - one with Oman, which has already been signed, and another with New Zealand, which is expected to be signed shortly. The key features of both agreements are outlined and assessed.
The issue also tracks ongoing India-U.S. bilateral trade negotiations and India-EU FTA negotiations.
Domestically, India took several steps aimed at strengthening its economic security. These included the Union Cabinet’s approval of a rare earth magnet manufacturing scheme, reflecting the growing strategic importance of critical minerals. Parliament also adopted the SHANTI Act, introducing changes to the existing regulatory framework to boost nuclear power generation, including by enabling private sector participation. In addition, safeguard duties were imposed on a range of steel products.
Finally, this issue covers trade actions initiated against India by Mexico and China.
To read this issue of the ESRR, Vol. III, Issue 12, please see the PDF attached.
