Politics now ‘trumps’ economics; govt’s thrust is on ‘Make in India’: Jaishankar

KOLKATA: External Affairs Minister S. Jaishankar, after receiving an Honorary Doctorate from IIM-Calcutta, said that today’s world is one where “politics increasingly trumps economics.” He noted that the U.S. is redefining global engagement through more bilateral dealings, while China continues to operate by its own rules. This has left many countries uncertain about whether to focus on great-power competition or on the compromises shaping it.

Jaishankar explained that nations are responding to globalization’s pressures and supply-chain insecurity by hedging their bets—engaging both the U.S. and China while avoiding rigid choices and simultaneously exploring new partnerships, reflected in rising interest in free trade agreements. He highlighted major shifts: China accounts for about a third of global production, making supply-chain resilience critical; the U.S. has become a major fossil-fuel exporter; and China leads in renewables. He also pointed to growing trade volatility, sanctions, asset seizures, and blockchain technologies as factors reshaping global finance.

India’s answer, he said, is to build comprehensive national power and reduce vulnerabilities, with ‘Make in India’ serving as a key policy response. He emphasized the need for a strong industrial base, urging Indian industry to invest in domestic supply chains and innovation.

Jaishankar concluded that India is forging new trade and connectivity initiatives to secure national needs, and that as India’s global economic stature rises, such efforts will gain even more importance. (IANS)

Also Read: Jaishankar, PM Modi pay tribute to constitution makers on Constitution Day