External Affairs Minister S. Jaishankar on 29 September 2026 said the world is moving towards a more multipolar order as nations recalibrate their relationships in response to a shifting United States, its evolving ties with China, and the erosion of long-held trading assumptions. Speaking in New York, Jaishankar described the moment as a structural adjustment to a more competitive international environment.

The Core Diagnosis: Competition and Interdependence

Jaishankar pointed to a central paradox shaping contemporary diplomacy — intense geopolitical competition existing alongside deep economic interdependence. When one country gains leverage through that interdependence, he argued, there is a growing temptation to weaponise it against rivals.

'Diplomacy has become an extreme sport,' Jaishankar said, noting that governments must now respond swiftly to high-stakes decisions while simultaneously maintaining the patience required for protracted negotiations. He cited geographical, financial, travel, and market-access 'choke points' as instruments of pressure that states increasingly deploy against one another.

US-China Rivalry and the Space in Between

The minister assessed the US-China relationship as the defining axis of global competition, while noting that competition between the two powers limits what they can collectively offer the rest of the world. He also flagged the erosion of traditional alliances and a greater tendency by the most powerful country — the United States — to act unilaterally.

Jaishankar noted that countries outside the US-China rivalry are actively seeking their own arrangements — exploring new partners, reassessing existing ties, and building buffers against external disruptions. 'The rest of the world is busy making its arrangements,' he said.

He also pushed back on the narrative that the United States alone had weakened international economic rules, arguing that market principles had been eroded long before current American trade policies took hold. That said, he acknowledged that Washington's shift towards bilateral trade deals was now reshaping how countries negotiate with each other — and could, over time, produce new bargains and relationships.

India's 'Portfolio Management' Approach

For India, Jaishankar outlined a strategy of deliberate balance across its relationships — encompassing the United States, Europe, Japan, China, Russia, the Gulf, ASEAN, and parts of the Global South. He compared this approach to 'portfolio management' — spreading engagement to reduce exposure to any single disruption.

He was clear, however, that this did not mean accepting perpetual instability. Major trading nations, he argued, have strong incentives to seek dependable partners and predictable conditions, even when a particular arrangement offers smaller near-term gains.

India participates in multiple overlapping groupings — G20, BRICS, and the Quad — giving it several simultaneous channels for advancing its diplomatic and economic interests. This multi-alignment architecture has been a consistent feature of Indian foreign policy under the current government.

Reforming Global Institutions

Jaishankar also raised the long-running debate over the reform of international institutions, noting that the United Nations was founded in 1945 under a very different distribution of economic and political power. That gap between institutional design and present-day realities, he indicated, remains unresolved and continues to fuel calls for restructuring.

Despite the turbulence, Jaishankar offered a measured note of optimism. 'I'm not pessimistic about the world,' he said, expressing confidence that countries would find new arrangements as they navigated the current period of competition and uncertainty. Whether the emerging multipolar order stabilises into predictable patterns or deepens into fragmentation remains the central question for global diplomacy ahead.