Kolkata, India – India's External Affairs Minister S. Jaishankar, speaking in Kolkata on Saturday, made a notable observation about the shifting dynamics of global trade and international relations, stating that "politics increasingly trumps economics" in today's world. Addressing an audience after receiving an Honorary Doctorate from IIM-Calcutta, Jaishankar's comments appear to be a veiled critique of the United States' approach to trade and engagement with other nations.
Jaishankar stressed the importance for India to diversify its supply sources to safeguard its national interests in an uncertain global landscape. He noted that the United States, traditionally a key player in the international system, is now setting "radically new terms of engagement" by engaging with countries on a one-on-one basis. He also pointed out that China "has long played by its own rules" and continues to do so, contributing to a fragmented global landscape. This situation, according to Jaishankar, creates uncertainty and prompts many countries to hedge their strategies.
These remarks come against a backdrop of ongoing trade tensions and disputes between India and the US, including significant tariffs imposed by the US on Indian goods. One example is the 50 percent tariff on Indian imports that was previously levied by the US. These trade frictions have created "issues" between the two countries, with both sides yet to find a "landing ground" for trade discussions.
Jaishankar's statement also comes as India is actively pursuing self-reliance and aiming to become a major manufacturing hub. He highlighted that a major power like India "must have a significant industrial base," emphasizing the importance of promoting advanced manufacturing in sectors like semiconductors, electric vehicles, drones, and biosciences. The "Make in India" initiative is a key policy response to these global shifts, marking a change in mindset and greater ambition for the nation.
The Minister also addressed the behavior of other major economies, adding that China “has long played by its own rules” and continues to do so, contributing to a fragmented global landscape. This uncertainty, he noted, leads many countries to hedge their strategies.
Despite these challenges, India is actively working to forge new trade arrangements and promote fresh connectivity initiatives. Jaishankar emphasized that India is narrowing infrastructural gaps through major improvements in transport, energy, and power. As India plans for developed nation status by 2047, its foreign policy aims to expand its global footprint. "When it comes to trade, we will naturally be guided by our people-centric vision," he said, highlighting that India's diplomacy is now "active rather than passive".
While acknowledging existing issues, Jaishankar has also stressed the importance of good trade relations with the US, recognizing it as the world's largest market. He stated that any trade deal must respect India's "red lines," balancing the need for negotiation with the protection of India's core interests. Despite current trade tensions, the broader India-US relationship is expected to grow, irrespective of political changes within either nation. The two nations are reportedly working towards doubling bilateral trade to $500 billion by 2030.
