World hedging between US and China; India pushing fresh trade deals: Jaishankar

EAM Jaishankar

External Affairs Minister S Jaishankar on Saturday said that global politics has changed in ways that now demand sharper strategic choices, with countries hedging between the United States and China while India works to strengthen its own influence through new trade partnerships and expanded connectivity.

Delivering his acceptance speech after receiving an Honorary Doctorate from IIM Calcutta, Jaishankar said the world had entered a period where political considerations increasingly override economic ones. Decisions today, he said, are shaped by questions of ownership, security, and long-term leverage.

He noted that the US, traditionally the main underwriter of the global system, is now setting “radically new terms of engagement” and prefers dealing with countries individually rather than through multilateral arrangements. China, he added, has long operated on its own terms and is now doing so even more assertively.

“In the ensuing scenario, other nations are unclear on whether their attention should be on the visible competition or the trade-offs and understandings that punctuate it,” he said. As a result, much of the world is hedging—engaging both powers directly while avoiding hard choices unless they offer a clear advantage.

Jaishankar said this uncertainty has pushed regions such as Europe and Asia to reassess their strategic positions. He pointed out that the Middle East has undergone significant shifts, Africa’s growth potential is being recognised more widely, and opportunities are emerging in Latin America as distances become less relevant.

Highlighting the scale of change, he noted that China now accounts for a third of global production, putting renewed focus on the resilience of supply chains. Conflicts, climate events, and market volatility, he said, have added to the risk of disruption. The global energy picture, too, has shifted, with the US becoming a major exporter of fossil fuels while China dominates renewable technologies. Sanctions, asset seizures, tariffs, and blockchain-based systems, he said, have all become part of the “new realities” shaping trade.

Turning to India’s response, Jaishankar said the country must build greater national capacity, reduce vulnerabilities, and expand its global influence. As India rises economically, he said, it must develop a strong industrial base, something that earlier policymakers did not fully prioritise.

He said the emphasis on Make in India reflects a shift in ambition, but added that Indian industry must adopt a long-term mindset, help build domestic supply chains, and participate more confidently in global ones.

With global politics in flux, Jaishankar said India is pushing to diversify supply sources, forge new trade agreements, and pursue connectivity initiatives that align with both economic and strategic goals. These efforts, he said, show the value the international community places on its relationship with India.

He stressed that the choices India makes now will have long-term consequences, and that its approach will remain people-centric while being guided by clear strategic considerations.