Must build reliable, resilient supply chains: Jaishankar

External Affairs Minister S Jaishankar on Thursday said the global economy was going through an uncertain and volatile period.

Speaking at the 10th CII-India Latin America-Caribbean Conclave in New Delhi, Jaishankar remarked, “Before we look at the potential for India-Latin America-Caribbean cooperation, a few words on the global economic scenario are in order. The fact is that we are navigating an uncertain and volatile period, where the accumulated stresses of the past and impending challenges of the future create a potent combination.”

Referring to Covid-19, which he said had a catastrophic impact on the global order, Jaishankar noted, “We are all developing countries and, therefore, among those most affected by the long-term consequences of the Covid pandemic. Indeed, the catastrophic impact of that event is hard to overstate.”

The minister said Covid-19 had significantly set back the realisation of SDG (sustainable development goals) targets. “On top of that, the implications of the Ukraine conflict for food, fuel, and fertiliser security have added further stress. Even otherwise, the global economy has been facing pressures from unsustainable debt, deteriorating terms of trade and hard currency shortages,” he said.

Jaishankar also highlighted that borrowing costs for developing countries have been exorbitant. “This challenging backdrop is the reality within which we must explore new forms of cooperation,” he said.

The minister emphasised the importance of economic lessons, stating, “Clearly, there is a need to de-risk the global economy from the dangers of over-concentration in any single geography. At the same time, we must build reliable and resilient supply chains, as we have now moved decisively and irrevocably into the digital era.”

He added, “We need to ensure trust and transparency in the selection of partners.”