Geo Economic and Economic Power

The economic power is the capacity of a country to use its economic resources and assets in order to achieve self-sufficiency. ‘Geo Economics is a combination of Geography and Economic activities of a nation that determines how it conducts trade with other nations.’ This is achieved through a set of activities that can be broadly divided into three categories: agriculture, manufacturing and industrial development, and services.

In fact, economic growth is very important for a nation as the capacity of a nation to fight a war depends upon its economic potential and technological superiority.

Today, the nature of war is very different from that of ancient wars. Modern war is a total war in which the accepted rules of warfare, as fought during ancient times called 'Dharmayudh' are disregarded.

In modern wars the entire resources of a nation are devoted for the successful conduct. For example, one of the main reasons for the victory of allied powers during the two World Wars was their superiority in resources, which ultimately determined war waging capability and resulted in victory. It means that resources should be utilized properly to make the country powerful.


A nation that is self-sufficient in food and agriculture need not depend on other countries as it can support itself and feed the entire population. As far as India is concerned agriculture is the chief occupation of seventy percent of the population and forms the backbone of the country. Large number of people derive their livelihood by cultivating the soil.

Agricultural activities in India are numerous and help feed the entire population of the country. India is self sufficient in rice and wheat production. Besides rice and wheat several other important food crops are also produced such as jowar, pulses and maize. Other crops are also produced for commercial purposes such as sugarcane, cotton, groundnuts, tobacco, tea, jute, etc. All of these earn considerable amount of foreign exchange for the country. It means that when these agricultural products are exported it brings foreign currency to the country, which can be used for enhancing defence capabilities of the country.

Industrial Resources

In recent years, India has made significant progress in industrial development. A variety of manufactured items are now produced in the country. Modern factories turning out all kinds of goods have been set up. Foreign collaborations have been made in establishing, particularly, metallurgical, engineering, electrical, chemical and pharmaceutical industries. This has laid the foundation of modern manufacturing industry in India.

Indian industries are manufacturing railways equipments, ship building, automobiles, aircraft, industrial machinery, electrical machinery and equipments. Chemical and paper industries have also made considerable progress after independence. As far as military is concerned, India is indigenously manufacturing missiles, tanks, helicopters, ships and other related weapon systems for use in defence. These are principally produced by several industries located throughout the country.

Some of the other major industries of India are: cotton textiles, woolen textiles, jute industry, sugar industry, leather industry, iron & steel, handicrafts and engineering industries.


Services can be understood as those that provide support services to the economic activities of the country. These include services such as tourism, education, health care, engineering, communications, transportation, information technology, finance and management. The services sector in India, today, occupies a predominant share of India's economic activity.

These different activities promote economic growth, which in turn help increase the economic and military power of the country by way of increasing the manufacturing of defence equipments for the country.