How do we understand the relationship between ‘national security’ and a global capitalist economy? I argue in this article that liberal constructivist scholars have tended to ignore the constitutive effects of the global economy in the process of distancing themselves from ‘materialist ontologies’ and ‘rationalist epistemologies’. I contend that an important aspect of state identities is that they are dynamic and are historically constituted in and through a relationship to global capital. Only by paying close attention to this fluctuating terrain, can one make sense of the security practices of nation-states. In the latter half of the article, I illustrate my argument with an analysis of the Indian nuclear tests of 1998.