'Politics trumps economics': Jaishankar flags global risks, urges India to diversify supply chains

Jaishankar said India aims to expand its global footprint steadily as it works toward becoming a developed nation by 2047, leveraging solidarity with the Global South.

External Affairs Minister S Jaishankar, on Saturday, noted that the world has entered an era where “politics increasingly trumps economics". He stressed the need for India to diversify its supply chains to safeguard national interests.

The EAM made these remarks after receiving an Honorary Doctorate from IIM-Calcutta.

“This is an era where politics increasingly trumps economics… and that is not a pun,” Jaishankar said, warning that in an uncertain global environment, countries must strengthen the reliability and resilience of their supply networks.

He remarked that the US, traditionally the underwriter of the international economic order, is now setting “radically new terms of engagement” by dealing with countries individually, marking a shift from multilateralism.

Jaishankar also pointed to China, saying it “has long played by its own rules” and continues to do so, adding to global unpredictability. He said nations worldwide are increasingly hedging against uncertainties arising from geopolitical competition, supply-chain disruptions, conflicts, and climate risks.

Against this backdrop, he underscored India’s push for self-reliance and its emergence as a manufacturing hub. “A major power, that too with high aspirations like us, must have a significant industrial base,” he said, highlighting the government’s ‘Make in India’ initiative as evidence of a “different mindset and greater ambition.”

He cited rapid progress in infrastructure, including highways, railways, ports, aviation, energy, and power, as helping India narrow the gap with leading Asian economies. The EAM also stressed the importance of advanced technologies, such as semiconductors, electric vehicles, drones, space, nanotech, and biosciences, as opportunities for India to leapfrog globally.

On foreign policy, Jaishankar said India aims to expand its global footprint steadily as it works toward becoming a developed nation by 2047, leveraging solidarity with the Global South. He described India’s diplomatic strategy as “active rather than passive.”

“The goal is not just to participate in global trade but to ensure that India remains resilient, reliable, and future-ready,” he said, underlining the importance of diversified supply chains for both national security and economic stability.