“US Has Set New Rules of Engagement”: S Jaishankar Amid Ongoing Trade Strains
External Affairs Minister S. Jaishankar on Saturday said that in today’s global environment, political considerations often outweigh economic logic, and for a nation like India, ensuring diversified supply chains is essential in an unpredictable world.
Speaking at the IIM-Calcutta campus after receiving an Honorary Doctorate, Jaishankar said the United States — traditionally seen as the primary architect of the global order — is now engaging with nations under “new and fundamentally different terms”, choosing bilateral dealings over broader multilateral frameworks. He added that India has been steadily building its own manufacturing capacity and pushing for greater self-reliance.
“This is a time when politics is overtaking economics — and that is not a wordplay,” he remarked. “In a world full of uncertainties, diversifying our sources of supply becomes even more critical to safeguard national interests.”
Referring to the changing US approach, he observed, “The United States, which for decades shaped the current global system, has now introduced radically different terms of engagement by interacting with countries individually.”
India and the US are currently involved in two separate trade discussions — one exploring a framework agreement on tariff issues and another aiming for a broader, more comprehensive trade pact.
Jaishankar also took note of China’s approach, saying that Beijing has “long followed its own set of rules” and continues to do so. In such a situation, nations often find themselves unsure whether to focus on overt competition or the underlying compromises and understandings shaping that competition, he said.
Facing the challenges of globalisation, fragmentation of supply chains and insecurity of supplies, “countries around the world are hedging their bets and preparing for every possible scenario,” he added.
He highlighted that India is rapidly upgrading its infrastructure and achieving major scientific milestones. With nearly one-third of global manufacturing located in China, he said the world is now closely evaluating the “strength and dependability” of supply networks.
“Conflicts and climate-related disruptions have only increased the risk of supply chain breakdowns,” he added. However, India’s gap with other successful Asian economies in areas such as highways, rail networks, aviation, ports, energy, and power is narrowing quickly, he asserted.
“We are making progress by any measure, and the world is noticing,” he said.
Jaishankar said India is actively working to build new trade partnerships and expand connectivity, guided by both strategic and people-first considerations. As the country envisions becoming a developed nation by 2047, foreign policy will aim to broaden India’s global influence, he added.
The minister said India’s growing partnership with the Global South gives the country a solid foundation to expand its diplomatic outreach. To build greater national strength, India must possess a robust industrial base, he emphasised.
“Encouraging industrial growth — and even offering incentives for it — is now a major economic priority,” he said, noting that the decade-long push under ‘Make in India’ reflects a shift toward higher ambition and a more confident mindset.
He underlined the importance of focusing on high-end technologies and advanced manufacturing so India does not fall behind.
“We have entered an era of chips and semiconductors, electric vehicles and batteries, drones, space technology, nanotechnology, and biosciences. Each of these areas gives us a chance to leapfrog and create distinctive national capabilities,” Jaishankar said.
