External Affairs Minister Dr. S Jaishankar declared on Saturday that nations worldwide are actively seeking trade and energy partnerships beyond the traditional dominance of the United States and China. He described this as a strategic move to hedge against global uncertainties and contingencies.
Global Power Dynamics in Flux
Speaking at an event at the Indian Institute of Management in Calcutta where he received an honorary doctorate, Jaishankar analyzed the rapidly changing nature of international relations. He identified the United States as the long-time underwriter of the contemporary global system but noted it has recently established radically new terms of engagement through one-on-one dealings with countries.
Regarding China, Jaishankar stated that the nation has consistently operated by its own rules and is now doing so more prominently than ever before. This shifting behavior from both major powers has created what he called an era where politics increasingly trumps economics.
The Urgent Search for Alternatives
Jaishankar emphasized that countries are exploring options beyond the US and China with great urgency. The visible evidence of this trend includes significant increased enthusiasm around free trade agreements across different geographical regions as nations respond to what he termed the pulls and pressures of globalization, fragmentation, and supply insecurities.
On the critical subject of de-risking and building resilience, the External Affairs Minister called for establishing more production centers and creating stronger supply lines. He highlighted that modern decisions are no longer made solely based on cost considerations but increasingly factor in ownership, security concerns, and the geographical origin of products and services.
Energy Transformations and India's Path
Jaishankar pointed to dramatic shifts in the global energy landscape, noting that the United States has transformed from a fossil fuel importer to a significant exporter, while China has established dominance in the renewable energy sector. He observed that where trade is concerned, supply-side risks are being aggravated by demand-side uncertainties.
The minister's remarks come at a crucial time when India meets over 85% of its crude oil demand through imports from countries including Russia, Saudi Arabia, Iraq, and the United States. Following the outbreak of war between Russia and Ukraine, India's reliance on oil imports increased substantially due to available discounted crude from Russia.
Jaishankar outlined India's strategic response to these global challenges, stating that India is actively pursuing self-reliance and establishing itself as a manufacturing base for various industries. This approach focuses on reducing vulnerabilities while promoting the country's influence in international markets.
As India's economy continues its growth trajectory, Jaishankar affirmed that the nation is preparing to shoulder greater responsibilities. He highlighted India's exponential advancements in both infrastructure development and cutting-edge scientific innovations as key foundations for this expanding global role.
