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MARCH 2026

Recent disruptions across energy markets, shipping Pillar I
routes, supply chains, and financial flows conclusively
demonstrate that the world economy has entered a phase Resource Security:
where economic policy and national security are deeply
intertwined. In such a volatile world, resilience becomes The Foundation of Stability
just as important as efficiency. Shocks now transmit rapidly
across borders and sectors, affecting growth, inflation, Resource security is the most basic and critical layer of
employment, and financial stability almost simultaneously. economic security. It includes reliable access to energy,
For a rapidly developing country deeply integrated with the food, water, fertilisers, and critical minerals, which are the
global economy, this raises a fundamental question: how essential inputs for daily life and industry. For a rapidly
should economic security be understood today, and how growing economy such as India, some degree of import
should policy be shaped to strengthen it? dependence is unavoidable, particularly in crude oil and
natural gas. Sustained growth requires reliable fuel supplies,
and import dependence makes the economy sensitive to
Nearly two decades ago, following the global financial
crisis, the CII took an early initiative to bring this vital subject global price movements. Over the past decade, India has
into the policy discussion, correctly arguing that economic strengthened its resilience through the aggressive
security is inseparable from national security. However, the diversification of import sources, expansion of strategic
world of 2026 is vastly different and more complex than petroleum reserves, and rapid growth in renewable energy
that of 2008. Globalisation has deepened but has also capacity. Moving forward, maintaining adequate food buffer
become remarkably more fragile. Supply chains are longer stocks and securing access to strategic materials like lithium,
and heavily concentrated. Energy markets are significantly rare earths, and copper are vital for our manufacturing
more volatile, and technology has fully transitioned into a capabilities and energy transition. Resource security must
strategic domain. In this environment, India must define fundamentally be treated as a long-term strategic priority. A
economic security in a wider, more contemporary sense clearly articulated timeframe and methodology by which this
and develop a clear framework to guide policy thinking in will be achieved is a necessary requirement even though
the critical years ahead. implementation will be challenging. The Pillar V discussed
later is an essential ingredient to make this happen.

Defining Economic Security in the Pillar II

Present Context
Supply Chain and Technological

Economic security today must be understood as the Security: Reducing Strategic
capacity of a nation to sustain high growth while
maintaining absolute resilience against external shocks, Dependence
deliberately avoiding excessive dependence on any
single source, preserving financial stability, and ensuring Modern industry relies heavily on complex global supply
that domestic development remains inclusive, chains, where geographical concentration creates severe
sustainable, and strategically autonomous. vulnerabilities even for the largest economies. Disruptions in
shipping routes or technology access can stall entire
sectors within mere weeks. Recognising this shifting global
For practical policy purposes, economic security can be
viewed through five interrelated pillars. Weakness in any reality early on, the Honourable Prime Minister and the
single one can expose the entire system to massive risk. government took a highly visionary step by launching the
A durable approach to economic policy requires actively Atmanirbhar Bharat movement. This timely and
strengthening all five pillars simultaneously. commendable initiative to build a self-reliant India has laid a
truly robust foundation for our long-term economic security.
By aggressively promoting domestic manufacturing in
critical sectors like electronics, semiconductors, defence
equipment, pharmaceuticals, and renewable energy
components, the government has pre-emptively addressed
massive supply chain risks. These proactive efforts should
be seen not just as standard industrial policy, but as the very
core of a broader strategy for national resilience.
Building upon the strong momentum of Atmanirbhar Bharat,
technological capability has now become a defining element
of national strength.

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