"India needs a national war room for economic sanctions response"
Weaponised interdependence
Using control of global networks to coerce other states.
Secondary sanctions
Penalties applied to third parties to enforce compliance indirectly.
India’s external economic security sits at the intersection of foreign policy, finance and commerce. Sanctions are measures imposed by states or international bodies to change behaviour by restricting economic or financial interaction. Two durable features matter for India. First, much cross‑border trade and finance uses globally concentrated nodes: the dollar system, a handful of global banks, reinsurers and maritime chokepoints such as the Strait of Hormuz. Second, extraterritorial provisions in some countries’ laws make third‑party actors vulnerable if they remain linked to sanctioned entities. This dynamic is commonly called weaponised interdependence because network control translates into coercive leverage. Historically, India has balanced adherence to UN Security Council sanctions with resistance to unilateral extraterritorial measures through diplomatic protest, legal arguments and alternate commercial arrangements.
Sanctions operate in layers. At the state level, a UN mandate is binding on member states. Separately, unilateral measures by a major power may include primary sanctions (direct prohibitions) and secondary sanctions that threaten penalties for third‑party engagement. Secondary sanctions function by threatening a firm’s access to critical services, chiefly US dollar clearing, correspondent banking and access to American markets. Financial intermediaries therefore practise commercial caution to avoid exposure even when a transaction is lawful under Indian law.
The transmission chain from a policy decision abroad to a domestic disruption is multi‑modal. Payment flows may be blocked at a correspondent bank in New York. …
In what ways would the ongoing US‑Iran Nuclear Pact controversy affect the national interest of India? How should India respond?
Which of the following about secondary sanctions is/are correct?
1.They directly prohibit domestic firms of the sanctioning country from certain transactions.
2.They threaten penalties on third‑country firms that continue designated transactions.
3.They rely on denying access to the sanctioning country's financial system.
Select the correct answer using the code given below:
Consider the following statements about measures to reduce exposure to extraterritorial sanctions:
1.Building national strategic storage for essential fuels reduces immediate supply disruption risk.
2.Promoting rupee settlement eliminates all exposure to US‑based correspondent banking risks.
Which of the statements given above is/are correct?
Which one of the following is the most direct operational role of a proposed Economic Security and Sanctions Office?
Which of the following best describes the purpose of the EU's Blocking Statute?
Assertion (A): Weaponised interdependence explains why control of a global network node creates leverage over other states.
Reason (R): A country controlling a critical network node can unilaterally change the legal status of transactions within that node.
Choose the correct code:
A.Both A and R are true and R is the correct explanation of A
B.Both A and R are true but R is not the correct explanation of A
C.A is true and R is false
D.A is false and R is true
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