External Affairs Minister S Jaishankar, in a veiled reference to the United States amid continuing trade frictions, said on Saturday that in today’s world, politics increasingly “Trumps” economics. He made the remarks in Kolkata after being conferred an honorary doctorate by the Indian Institute of Management Calcutta, where he underlined the urgent need for India to diversify its supply sources to protect national interests.
“This is an era where politics increasingly trumps economics, and that is not a pun. In an uncertain world, it is all the more important that we continuously diversify supply sources to guarantee our national needs,” he stated. The Minister’s observations come in the context of fresh trade disputes and the steep tariffs imposed by the United States, including the 50 per cent rate on Indian imports introduced by US President Donald Trump.
Jaishankar pointed to the shifting character of American policy: “The United States, long the underwriter of the contemporary system, has set radically new terms of engagement. It is doing so by dealing with countries on a one-on-one basis,” he said.
At present, India and the United States are pursuing negotiations on two parallel tracks—one focused on resolving immediate tariff concerns and the other directed toward a broader, comprehensive trade agreement.
Although both countries aspire to increase bilateral trade volumes and remove longstanding market-access obstacles, differences remain. Despite the challenges, recent figures indicate that India’s exports to the US have fallen less sharply than initially feared.
Officials have noted that India has “avoided the worst impact of the 50% US tariffs” and is “ready to wait” for a more advantageous arrangement.
The two sides continue to work towards their shared goal of doubling bilateral trade to USD 500 billion by 2030, from the current level of USD 191 billion. Washington is pressing for deeper access to India’s agricultural and high-technology markets, whereas New Delhi is seeking greater mobility for Indian professionals as well as clearer regulations on digital trade and cross-border data flows.
Turning to other major players, Jaishankar observed that China “has long played by its own rules” and persists in doing so, thereby adding to the fragmentation of the global order.
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This broader uncertainty, he said, is prompting many countries to adopt hedging strategies.
“In the ensuing scenario, other nations are unclear whether attention should be on visible competition or the trade-offs and understandings that punctuate it. 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,” he remarked.
He highlighted India’s determined push for self-reliance and the building of a robust industrial base.
“India has been actively pursuing self-reliance and making itself a manufacturing base for industries. India has been making exponential advancements in infrastructure as well as in the latest scientific developments,” he said.
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With roughly one-third of global manufacturing now concentrated in China, Jaishankar stressed that supply-chain resilience has assumed greater importance, particularly since “conflicts and climate events have added to the possibility of that disruption”.
The Minister pointed out that India is rapidly closing infrastructure deficits through massive upgrades in transport, energy, and power sectors.
As India charts its path to becoming a developed nation by 2047, its foreign policy will focus on enlarging the country’s international presence. “When it comes to trade, we will naturally be guided by our people-centric vision,” he said, emphasising that Indian diplomacy has shifted from being “passive” to “active”.
A major power such as India, Jaishankar concluded, “must have a significant industrial base”, and fostering advanced manufacturing—in areas ranging from semiconductors and electric vehicles to drones and biosciences—remains central to realising that objective.
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