Trade curbs can become economic weapons, warns India's top policy aide

India's top policy official has warned that trade measures such as export restrictions, sanctions and tariffs have evolved beyond conventional economic tools to become potential weapons in international relations.

P.K. Mishra, Principal Secretary to the Prime Minister, made the remarks while addressing the Kautilya Economic Conclave, focusing on systemic risks in the global economy. He underscored how geopolitical disruptions extend beyond conflict zones, destabilising energy and food markets while creating broader economic vulnerabilities through maritime chokepoints and shipping route disruptions.

For India specifically, energy security remains a critical concern. As a major energy importer, any prolonged disruption to key maritime passages could significantly impact the economy. Mishra highlighted the Strait of Hormuz as a stark example of how geographical positioning translates directly into economic risk exposure.

In response to these multifaceted threats, India has developed a multi-layered protection strategy, Mishra indicated. The approach acknowledges the interconnected nature of modern economies and the need for resilience against both conventional and unconventional economic pressures stemming from geopolitical uncertainties.