India in 2025 faces complex global challenges. Rising US tariffs and visa restrictions strain its economy. Diplomatic tensions with the US add pressure. Meanwhile, India seeks to strengthen food and defence security through international partnerships and domestic reforms.
US-India Economic and Diplomatic Challenges
The US has imposed a 50% tariff on Indian goods and increased H-1B visa fees. Pharmaceuticals, once exempt, now face tariffs. These measures risk slowing India’s growth and causing job losses. India’s rupee is depreciating under economic stress. Prime Minister Narendra Modi avoided the 2025 UN General Assembly, signalling caution. Instead, he urged Indians to support domestic products and announced GST reforms to boost the economy.
Atmanirbhar Bharat and Defence Self-Reliance
India’s vision of Atmanirbhar Bharat marks self-reliance, especially in defence and food security. Currently, India depends on foreign suppliers for advanced defence technology from Russia, France, and the US. A step forward is the inauguration of India’s first defence factory abroad, in Morocco, led by Tata Advanced Systems. This plant marks a strategic collaboration enhancing India’s defence manufacturing footprint.
Food Security and Fertiliser Dependency
India’s food security depends heavily on chemical fertilisers. The population of 1.45 billion is projected to reach 1.66 billion by 2050. Nitrogenous fertilisers like urea rely on imported natural gas for 90% of production. Phosphatic fertilisers depend on imported raw materials such as phosphate rock and phosphoric acid. India partially manufactures and partially imports these fertilisers.
Strategic Partnerships with Morocco and Saudi Arabia
Morocco holds nearly 70% of the world’s phosphate reserves. India’s defence factory in Morocco opens doors for joint ventures in phosphate mining and fertiliser production. Products like Triple Super Phosphate (TSP) could replace existing fertilisers, reducing soil damage. The OCP group in Morocco is a key player with government support. India has also signed an agreement to import over three million tonnes of phosphate annually from Saudi Arabia. However, Saudi Arabia’s recent defence partnership with Pakistan complicates this relationship, urging caution in geopolitical alliances.
Challenges and Opportunities Ahead
India must diversify natural gas sources and align domestic prices with international levels to encourage exploration. Joint ventures in fertiliser production with Morocco could secure long-term supply and reduce import dependency. Food security relies on stable supplies of nitrogen, phosphates, and potash, all largely imported. Geopolitical risks require India to build trusted partnerships to safeguard these critical inputs. Agriculture and chemical ministers share the responsibility of ensuring India’s food security through strategic diplomacy and industrial cooperation.
Questions for UPSC:
- Critically analyse the impact of US economic policies on India’s trade and diplomatic relations in the 21st century.
- Comment on the significance of Atmanirbhar Bharat in India’s defence and food security sectors with suitable examples.
- Explain the role of strategic international partnerships in ensuring India’s food security and how geopolitical factors influence these alliances.
- What are the challenges of dependency on imported fertilisers for India’s agriculture? How can India achieve sustainable fertiliser self-reliance?
