Jaishankar Warns of Global Economic Risks Due to Rising Political Influence
External Affairs Minister S Jaishankar has raised concerns about the increasing influence of politics over economics in the global landscape. Speaking after receiving an Honorary Doctorate from IIM-Calcutta, Jaishankar emphasized the need for India to diversify its supply sources to ensure national security in an uncertain world.
Politics Trumps Economics
Jaishankar stated, "This is an era where politics increasingly trumps economics... In an uncertain world, it is all the more important that we continuously diversify supply sources to guarantee our national needs." He noted that the United States is setting new terms of engagement by dealing with countries individually, while China continues to operate by its own rules.
Trade Tensions and Global Hedging
These remarks come amidst ongoing trade tensions between India and the United States, particularly after the U.S. imposed tariffs on Indian goods. Jaishankar observed that other nations are responding to these pressures by hedging against potential issues. He said, "Faced with such pulls and pressures of globalisation, of fragmentation and of supply insecurity, the rest of the world responds by hedging against all contingencies."
Supply Chain Resilience
Jaishankar also highlighted China's significant role in global production, noting that a third of global production takes place in China. This underscores the importance of having "resilience and reliability" in supply chains, especially given the potential for disruptions due to conflicts and climate events.
India's Progress and Future Initiatives
He noted that India is rapidly catching up with other successful Asian economies in terms of infrastructure development, including:
- Highways
- Railways
- Aviation
- Ports
- Energy and Power
"We are now moving ahead, by any standards," Jaishankar said, adding that the world is noticing India's progress. He concluded by stating that India is actively pursuing new trade arrangements and promoting connectivity initiatives to strengthen its position in the global economy.
