New Delhi: External Affairs Minister S. Jaishankar on Monday highlighted the growing challenges in global trade caused by what he termed “tariff volatility,” while warning of profound shifts in the geopolitical and economic landscape. Speaking at the first Aravali Summit hosted by Jawaharlal Nehru University’s School of International Studies on its 70th anniversary, Jaishankar outlined the strategic consequences of these changes for India and the world.
“The global landscape is undergoing intense transformation,” Jaishankar said, pointing out that nearly one-third of global manufacturing has shifted to a single geography, an apparent reference to China. He added that trade patterns are being disrupted and anti-globalization sentiment is on the rise in many countries. “Trade calculations are being overturned by tariff volatility,” he noted, implicitly referencing Washington’s recent trade policies.
Jaishankar also spoke on broader economic and technological trends reshaping global dynamics. He cited the US emergence as a major fossil fuel exporter, China’s leadership in renewable energy, and the growing influence of Big Tech. He flagged the strategic competition for rare earths and critical minerals, tighter technology controls, the rise of crypto, and sanctions as factors fundamentally altering global finance.
“The quality of weaponry and the nature of war itself has changed, becoming more stand-off, more impactful, and more risk-prone,” Jaishankar said. He also expressed concern over an erosion of sovereignty through technological penetration and manipulation, noting that traditional metrics such as cost are increasingly supplemented by considerations of ownership and security.
Jaishankar emphasized that the world is moving from a belief in the balance of power toward calculations based on margins of power, driven by the “weaponization of everything” and less restraint in using available tools. “All nations now face these predicaments,” he said.
Despite the challenges, Jaishankar stressed that India must strategize and rise amid volatility, balancing the safeguarding of national interests with calculated risks to advance globally. “We have to de-risk our exposures and engagements, and yet, take risks when necessary,” he said.
On questions about India’s foreign policy stance, Jaishankar described it as “to some extent, both agnostic and independent.” He cited historical examples, including the Indo-Soviet relationship, noting that India has consistently acted in its national interest, even when pressured by other powers or international law principles. “National interest comes over everything else,” he asserted.
The minister’s remarks underscored India’s focus on navigating a rapidly evolving world order, marked by economic volatility, technological competition, and shifting power dynamics.
