India's maritime geography and economic needs make it a global leader of an emerging blue economy that encompasses fisheries, renewable energy, sustainable shipping, biotechnology, and coastal tourism. The blue economy contributes nearly 4% of India's GDP. With more than 95% of India's trade (by volume) carried through sea routes, maritime sustainability is critical to India’s national interests.”
Since the early 2000s, India and the United States have gradually deepened their strategic partnership, moving beyond trade and culture toward technologies, defence, and security. Space and cyberspace have emerged as domains of critical importance due to their increasing role in national security, economic infrastructure, and strategic competition.
India's policy framework initiatives like the National Critical Minerals Mission (NCMM), Production-Linked Incentive (PLI) schemes, and strategic auctions for mineral blocks, emphasize its determination to secure a steady supply of raw materials for its booming manufacturing and renewable energy sectors. At the same time, Australia's robust mining sector and forward-thinking policy landscape make it a natural supplier capable of filling the supply gaps for key trade partners like India.
The Indo-Pacific region today is more than a geographic construct; it is a critical arena where great power rivalries intersect with global trade. At the heart of this region lies the South China Sea, a vital maritime route through which nearly one-third of global trade passes annually. For Vietnam, this waterway represents not only economic lifelines but also a daily struggle to safeguard its sovereignty against persistent incursions by Chinese coast guard vessels and harassment of its fishermen.
The International North–South Transport Corridor (INSTC) is a multi-modal transportation network that integrates ship, rail, and road routes for moving freight between India, Russia, Iran, Europe, and Central Asia. The corridor's primary objective is to enhance regional connectivity, promoting trade and economic cooperation among participating nations and regions.
Countries have been attempting to improve supply chain linkages as well as searching for resilient and long-term value chains. Countries are interconnected and dependent on one another countries for production inputs leading to exports. The COVID-19 and subsequent trade measures have led to restricting the flow of goods and services between the countries. Today, value chain and intra-industry trade account for more than half of Asia’s trade. The pandemic is also seen as an opportunity to rebuild trade partnerships and supply chain linkages.
On October 23, 2024, Prime Minister Narendra Modi and President Xi Jinping, on the sidelines of the BRICS Summit in Kazan, decided to bury the hatchet and work expeditiously and sincerely to resolve various bilateral issues, especially the breach of trust stemming from China’s unsuccessful incursion in Galwan in 2020.