Economic Security & Supply Chain Resilience
Indian Economy
- PYQs8
- Articles1
Background
Addresses contemporary geopolitical and economic challenges, India's strategy for strategic autonomy, impact on industrial development, and the role of international partnerships in mitigating economic risks.
Economic security encompasses a nation's ability to maintain its economic well-being and protect itself from external shocks, including disruptions to critical supply chains. Supply chain resilience, particularly for strategic goods like critical minerals, has become a key policy focus for countries aiming to reduce vulnerabilities and enhance strategic autonomy.
Facts & tables
- Dialogue on Economic Security
- Established between India and France to address shared concerns.
- Strengthening Supply Chains
- A primary objective of the dialogue, focusing on making them more robust against disruptions.
- Critical Minerals
- Specific focus on ensuring resilient supply chains for these strategically important resources.
- Bilateral Cooperation
- India and France agree to collaborate on this issue, reflecting a global trend towards de-risking.
| Type | Reference |
|---|---|
| Conceptual area | International Trade |
| Conceptual area | National Security |
| Body | Role |
|---|---|
| Ministry of External Affairs (India) | Negotiates and implements |
| Ministry of Commerce and Industry (India) | Formulates policy |
Prelims angle
Prelims angle: Statement-based questions
Prelims angle: Factual recall
- New India-France 'Economic Security Dialogue'.
- Aims to strengthen supply chain resilience.
- Specific focus on critical minerals.
- Reflects global de-risking trend.
- Enhances strategic autonomy.
| Year | Framing tags |
|---|---|
| 2025 | Statement-based questions, Factual recall |
| 2020 | Conceptual understanding, Multi-statement analysis |
| 2019 | Factual recall, Conceptual understanding |
| 2019 | Factual recall |
| 2017 | Definition-based questions, Policy measures |
| 2017 | Factual recall, Terminology-based question |
| 2017 | Multi-statement analysis, Factual recall |
| 2016 | Multi-statement analysis, Conceptual understanding |
Timeline
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International Trade
Conceptual area
-
National Security
Conceptual area
-
Prelims 2016
Multi-statement analysis, Conceptual understanding
-
Prelims 2017
Definition-based questions, Policy measures
-
Prelims 2017
Factual recall, Terminology-based question
-
Prelims 2017
Multi-statement analysis, Factual recall
-
Prelims 2019
Factual recall, Conceptual understanding
-
Prelims 2019
Factual recall
-
Prelims 2020
Conceptual understanding, Multi-statement analysis
-
Prelims 2025
Statement-based questions, Factual recall
-
India, France adopt Innovation Roadmap 2030, Economic Security Dialogue
India and France have established an 'Economic Security Dialogue' to enhance supply chain resilience, particularly for critical minerals, reflecting a growing global emphasis on protecting national economies from external shocks and ensuring strategic autonomy.
See also
Past papers
2016–2025 · 7 questions
In the news
India, France adopt Innovation Roadmap 2030, Economic Security Dialogue
India and France have established an 'Economic Security Dialogue' to enhance supply chain resilience, particularly for critical minerals, reflecting a growing global emphasis on protecting national economies from external shocks and ensuring strategic autonomy.
Try these PYQs
Consider the following statements:
I. India has joined the Minerals Security Partnership as a member.
II. India is a resource-rich country in all the 30 critical minerals that it has identified.
III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.
Which of the statements given above are correct?
Critical minerals are essential for modern technologies and clean energy, but many countries, including India, depend on imports for several of them. To strengthen supply chains, India has joined international partnerships and reformed mining laws. ✅ Statement I: Correct India joined the Minerals Security Partnership (MSP) in 2023 to ensure reliable access to critical minerals. ❌ Statement II: Incorrect India is not resource-rich in all 30 critical minerals it has identified and remains import-dependent for several, like cobalt and nickel. ✅ Statement III: Correct In 2023, Parliament amended the Mines and Minerals Act, giving the Central Government power to auction leases for critical minerals.
Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and
The Broad-based Trade and Investment Agreement (BTIA) is negotiated between India and the European Union (EU).
Consider the following statements:
1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
3. TFA came into force in January 2016.
Which of the statements given above is/are correct?
The trade facilitation decision is a multilateral deal to simplify customs procedures by reducing costs and improving their speed and efficiency. Statement 1 is correct. India has ratified the Trade Facilitation Agreement (TFA) of the WTO. This signifies India's official acceptance and implementation of the agreement's provisions. Statement 2 is correct. The TFA is indeed a part of the WTO's Bali Ministerial Package of 2013. This package refers to a collection of agreements reached during the Ninth Ministerial Conference of the World Trade Organization in Bali, Indonesia. The TFA was a landmark achievement within this package. Statement 3 is incorrect. The Trade Facilitation Agreement (TFA) came into force in February 2017, not January 2016. It required ratification by two-thirds of WTO members before taking effect.
Among the following, which one is the largest exporter of rice in the world in the last five years?
India overtook Thailand as the world's largest riceexporter in 2015, since then India is held its position while China is the largest producer of rice. Below are the few countries that exported the highest dollar value worth of rice in 2018.
1) India US$7.4 billion (30.1% of total rice exports)
2) Thailand $5.6 billion (22.7%)
3) Vietnam $2.2 billion (9%)
With reference to the ‘Trans-Pacific Partnership’, consider the following statements:
1. It is an agreement among all the Pacific Rim countries except China and Russia.
2. It is a strategic alliance for the purpose of maritime security only.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: While China and Russia were not part of the TPP negotiations, it wasn't solely focused on Pacific Rim countries. Other economies like Vietnam and Singapore were part of the TPP despite not exactly being on the Pacific Rim. Statement 2 is Incorrect: The TPP was a proposed trade agreement, not a strategic alliance for maritime security. It aimed to reduce trade barriers and promote economic integration among member countries. The TPP negotiations were concluded in 2015, but the agreement was never ratified by all the signatories. The United States withdrew from the TPP in 2017, effectively ending the initiative in its original form. However, some member countries pursued alternative trade agreements based on the TPP framework. Hence, option D is the correct answer.
Show 3 more PYQs
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?
1. Not depending on short-term foreign borrowings
2. Opening up to more foreign banks
3. Maintaining full capital account convertibility
Select the correct answer using the code given below:
Not depending on short-term foreign borrowings: This reduces exposure to capital flight. During a crisis, foreign investors may pull their money out of emerging markets like India, leading to rupee depreciation and financial instability. By limiting short-term foreign borrowings, India can lessen the impact of such capital flight. Opening up to more foreign banks: While this might seem beneficial, it can also increase reliance on foreign capital. During a crisis, foreign banks might be more likely to restrict credit, negatively impacting the Indian economy. Maintaining full capital account convertibility: This allows for the free movement of capital in and out of the country. While it can be beneficial in normal times, it can also exacerbate capital flight during a crisis. Therefore, the most prudent strategy is to reduce dependence on short-term foreign borrowings to minimize the vulnerability caused by potential capital flight. Hence, only statement 1 is correct. Hence, option A is the correct answer.
Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?
* The country's vegetable oil imports for the first six months of the oil year during November 2018 to April 2019 stood at 75,41,689 tonne, up about 3% from 73,18,295 tonne reported in the same period last year. * Vegetable oils account for the highest import in terms of value in the last five years. India relies on imports for 70 percent of its edible oil consumption.
The term ‘Digital Single Market Strategy’ seen in the news refers to -
The Digital Single Market Strategy refers to an initiative by the European Union (EU) that aims to create a unified digital market across all member states. Overall, the Digital Single Market Strategy aims to stimulate growth in the European digital economy by fostering innovation, competition, and consumer confidence in the online marketplace.