External Affairs Minister Dr. S. Jaishankar delivered a significant assessment of global dynamics on Saturday, emphasizing that political considerations now frequently override economic logic in international relations. Speaking at IIM-Calcutta where he received an Honorary Doctorate, Jaishankar outlined India's strategic response to this new reality.
India's Supply Chain Diversification Strategy
Jaishankar stressed that in today's uncertain world, India must continuously broaden its supply sources to secure essential national requirements. He highlighted that the traditional rules of engagement have shifted dramatically, requiring nations to adapt their economic strategies accordingly.
"This is an era where politics increasingly trumps economics... and that is not a pun," Jaishankar stated clearly. "In an uncertain world, it is all the more important that we continuously diversify supply sources to guarantee our national needs."
US-China Dynamics Reshaping Global Order
The External Affairs Minister pointed to significant changes in how major powers approach international relations. The United States has introduced a markedly different approach, engaging with countries on a one-on-one basis rather than through broader group frameworks that characterized previous eras.
Regarding China, Jaishankar noted that the country has "long played by its own rules" and continues to do so. This behavior, combined with the fact that a third of global production currently occurs in China, has raised serious questions about the resilience and reliability of supply chains worldwide.
"Conflicts and climate events have added to the possibility of that disruption," he warned, explaining why other nations are hedging against all contingencies in this complex landscape.
India's Manufacturing and Infrastructure Push
Jaishankar detailed India's proactive response to these global challenges. The country has been making exponential advancements in infrastructure including highways, railways, aviation, ports, energy, and power sectors. He asserted that India's gap with more successful Asian economies is rapidly narrowing.
"We are now moving ahead, by any standards," Jaishankar declared, adding that the world is taking note of India's progress. The emphasis on 'Make in India' over the past decade reflects what he described as a "different mindset and greater ambition."
The minister highlighted that promoting industrial growth and incentivizing manufacturing has become a key economic priority. India is focusing on advanced technologies including chips and semiconductors, electric vehicles and batteries, drones and space technology, as well as nanotechnology and biosciences.
"Each of them offers opportunity to leapfrog and establish unique capabilities," Jaishankar emphasized, pointing to India's strategic positioning in cutting-edge sectors.
New Trade Arrangements and Global South Solidarity
India is actively forging new trade arrangements and promoting fresh connectivity initiatives guided by strategic and economic considerations. The country's foreign policy aims to steadily expand its footprint beyond current confines as part of the vision for a developed India by 2047.
Jaishankar highlighted the importance of India's solidarity with the Global South as a foundation for expanding international influence. He described India's diplomatic role as "active rather than passive" when it comes to increasing comprehensive national power.
The minister revealed that India and the United States are conducting two parallel negotiations - one focusing on a framework trade deal to address tariffs, and another on a comprehensive trade agreement.
Jaishankar's address at IIM-Calcutta provided a comprehensive overview of India's strategic thinking amid global realignments, emphasizing self-reliance, diversified partnerships, and technological advancement as key pillars of the nation's foreign and economic policy.
