S Jaishankar’s comments come against the backdrop of recent trade disputes and steep US tariffs, including a 50 per cent rate on Indian imports levied by US President Donald Trump.
External Affairs Minister S Jaishankar, in a veiled reference to the US amid ongoing trade tensions, said on Saturday that politics nowadays increasingly ‘trumps’ economics in an “uncertain world”. Speaking in Kolkata after receiving an Honorary Doctorate from IIM-Calcutta, he stressed the importance of diversifying India’s supply sources to safeguard national interests.
“This is an era where politics increasingly trumps economics and that is not a pun. In an uncertain world, it is all the more important that we continuously diversify supply sources to guarantee our national needs,” he stated.
His comments come against the backdrop of recent trade disputes and steep US tariffs, including a 50 per cent rate on Indian imports levied by US President Donald Trump.
Jaishankar highlighted the evolving nature of Washington’s policy. “The United States, long the underwriter of the contemporary system, has set radically new terms of engagement. It is doing so by dealing with countries on a one-on-one basis,” he said.
India and the US are currently negotiating two parallel tracks—one to address tariff issues and another aimed at establishing a comprehensive trade agreement.
While both sides hope to expand trade volumes and resolve long-standing market access barriers, tensions persist.
Nevertheless, recent data shows India’s exports to the US have declined less than expected.
Officials say India has “avoided the worst impact of the 50% US tariffs” and is “ready to wait” for a more favourable deal.
Both nations are working toward a target of doubling bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.
Washington is pushing for greater access to India’s agricultural and high-tech markets, while New Delhi seeks improved mobility for Indian professionals along with clearer rules on digital trade and data flows.
Jaishankar also addressed the behaviour of other major economies, saying that China “has long played by its own rules” and continues to do so, contributing to a fragmented global landscape.
This uncertainty, he noted, leads many countries to hedge their strategies.
“In the ensuing scenario, other nations are unclear whether attention should be on visible competition or the trade-offs and understandings that punctuate it. Faced with such pulls and pressures of globalisation, of fragmentation and of supply insecurity, the rest of the world responds by hedging against all contingencies,” he observed.
He underscored India’s drive toward self-reliance and a stronger industrial foundation.
“India has been actively pursuing self-reliance and making itself a manufacturing base for industries. India has been making exponential advancements in infrastructure as well as in the latest scientific developments,” he said.
With a third of global production now concentrated in China, Jaishankar argued that supply chain resilience has become more critical, especially as “conflicts and climate events have added to the possibility of that disruption”.
Jaishankar noted that India is narrowing infrastructural gaps through major improvements in transport, energy, and power.
