Best of BS Opinion: De-risking economies in an increasingly uncertain world

Here are the best of Business Standard's opinion pieces for today

India’s decision to join Pax Silica signals a decisive shift in its technology and supply-chain strategy. The US-led coalition, formed in December 2025, brings together major economies to coordinate investments in semiconductors, AI infrastructure and critical minerals while reducing dependence on China. For India, the trigger is clear as it sources most of its rare-earth magnets from Chinese suppliers and recent export curbs disrupted automobile and electronics production. Yet strategic caution is necessary, highlights our first editorial. De-risking from China must not translate into over-reliance on US-led technology systems. The long-term gains will depend on domestic capacity, regulatory clarity and preserving strategic autonomy. 

Meanwhile, Russia’s war on Ukraine has entered its fifth year as a grinding conflict with heavy losses and limited territorial change, notes our second editorial. Estimates from the Centre for Strategic and International Studies suggest Russian casualties have crossed one million, while Ukraine has also suffered severe losses. Despite its scale, Russia controls less territory than it did in early 2022. The war has reshaped European security, prompting Finland and Sweden to join Nato. With Russia entrenched and external powers backing opposing sides, the conflict appears locked in a prolonged stalemate. 

Writing on MSME reform, Rama Bijapurkar argues that policy must encourage growth rather than protect smallness. Simplifying compliance is welcome, but exemptions risk trapping firms at subscale levels. Many micro enterprises remain fragile because they lack credit access, productivity investment and formal governance. The case is for systemic reform: a digital compliance stack, shared accounting platforms and credible intermediaries that reduce costs without lowering standards. Governance discipline, financial transparency and board oversight should extend beyond startups to MSMEs. Treating startups as growth vehicles while expecting MSMEs to remain small limits India’s economic potential. 

Ananth Narayan examines how RBI bond purchases and dividend transfers have supported government finances. Large payouts in recent years have eased borrowing pressures and injected liquidity, while open market operations have kept yields contained. But such support has limits. Dividends partly reflect accounting gains and recycled interest flows, raising concerns about indirect monetisation. If inflation or external pressures intensify, the RBI may have to recalibrate. Deepening fixed-income markets and reducing the revenue deficit are essential to avoid overdependence on central bank financing. 

Finally, Ambi Parameswaran reviews Starting A Startup by James Sinclair, a practical guide for B2B founders. The book’s central lesson is straightforward: success begins with solving real customer problems. Securing the first paying client validates demand. Founders must define their Ideal Customer Profile, understand market size through TAM, SAM and SOM analysis, and build through iteration rather than chasing abstract product-market fit. The book offers grounded advice for entrepreneurs determined to build with discipline rather than assumption. 

Stay tuned!