Critically assess whether external economic pressures, such as tariffs, constrain India’s strategic autonomy in practice.

GS3 Infrastructure
Critically assess whether external economic pressures, such as tariffs, constrain India’s strategic autonomy in practice.

Critically analyze

  • 10 marks
  • 8 min
  • 150 words
  • Medium

The Hindu

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• India’s strategic autonomy refers to its capacity to pursue national interests independently amid external pressures. The increasing use of economic instruments such as tariffs, sanctions, and trade barriers by major powers raises questions about constraints on this autonomy.

Nature of external economic pressures: – Tariffs imposed by major economies, particularly the U.S. and EU, affect India’s exports in steel, aluminium, textiles, and digital services. – Supply chain disruptions and protectionist trends heighten vulnerability in trade-dependent sectors.

Constraints on strategic autonomy in practice: – Tariff threats can influence India’s negotiating positions in trade agreements, technology standards, and market access. – Dependence on external markets for exports and critical imports (energy, semiconductors) limits short-term policy flexibility. – Compliance pressures arise indirectly through WTO disputes, preferential trade frameworks, and retaliatory risks.

Limits to such constraints: – India has diversified trade partnerships and leveraged multilateral forums to resist unilateral pressure. – Strategic sectors such as defence procurement and digital regulation show calibrated resistance despite external economic costs. – Withdrawal from RCEP and selective tariff retaliation indicate retained policy space.

Adaptive responses by India: – Emphasis on Atmanirbhar Bharat to reduce external vulnerabilities. – Use of Production Linked Incentive (PLI) schemes to strengthen domestic manufacturing. – Engagement in plurilateral arrangements without binding strategic commitments.

Critical assessment: – External economic pressures constrain tactical choices but do not decisively erode strategic autonomy. – Autonomy is increasingly exercised through diversification and resilience rather than insulation.