Kolkata, Nov 29 (NationPress) External Affairs Minister (EAM) S. Jaishankar emphasized that in today's world, politics is increasingly overshadowing economics. He shared these insights following his reception of an Honorary Doctorate from IIM-Calcutta at its Joka campus.

"This is a time when politics increasingly trumps economics and that is not a mere play on words," S. Jaishankar remarked.

Expanding on current geopolitical dynamics, the EAM noted that the US is redefining engagement terms, opting for bilateral interactions over traditional frameworks, while China continues to operate under its own set of guidelines.

He pointed out that in this complex situation, nations are often uncertain about focusing on overt competition versus the underlying trade-offs.

Amid the challenges of globalization, fragmentation, and supply chain vulnerabilities, S. Jaishankar stated: "The global response involves hedging against various risks. While engaging directly with the US and China, nations tend to sidestep choices when possible and pursue them when advantageous. Concurrently, there’s a growing urgency to explore alternatives among themselves, evidenced by the rising enthusiasm for free trade agreements worldwide."

Regarding supply chain realities, he highlighted that approximately a third of global production occurs in China, emphasizing the importance of resilience and reliability in supply chains, especially as conflicts and climate events heighten disruption risks.

On energy dynamics, he noted that the US has transitioned from a major importer to a significant exporter of fossil fuels, while China leads in renewable energy.

Addressing trade tensions, EAM Jaishankar remarked that supply-side issues are exacerbated by demand-side uncertainties.

"The relevance of tariff rates to trade outcomes has significantly increased volatility, and in finance, the extensive use of sanctions, asset seizures, and the rise of blockchain technologies are now part of our new realities," he added.

The minister characterized India’s 'Make in India' initiative as a vital policy response to these global transformations.

"How is India addressing these new challenges? By implementing policies and actions that enhance our comprehensive national power, minimize vulnerabilities, and augment our influence. These factors are central to our diplomatic efforts. As India advances and our economy expands, we are preparing to assume greater responsibilities in this context," he stated.

Jaishankar asserted that a major power must possess a robust industrial foundation — a belief that was not always shared among policymakers before 2014.

"Fostering industrial development and incentivizing it are now key economic priorities. The focus on ‘Make in India’ over the past decade reflects a new mindset and heightened ambition," he remarked.

For industries to reach their full potential, he encouraged corporate India to think long-term and develop domestic supply chains while engaging in global networks.

"As ‘Make in India’ takes root, it is bolstered by research, innovation, and design in India," he said.

In conclusion, S. Jaishankar asserted that in an unpredictable world, diversifying supply sources is critical for meeting national needs.

"With these factors in mind, we are currently working to establish new trade agreements and promote fresh connectivity initiatives. While these represent crucial aspects of our policy objectives, they also highlight the significance the world places on its relationship with India," he remarked.

He affirmed: "As we rise within the global economic framework, the rationale for these initiatives will only strengthen. These efforts have long-term implications and must be approached with careful consideration. Our trade strategies will be guided by a people-centric vision, while our connectivity plans will balance both strategic and economic factors."