Shifting US-China dynamics unsettling global order: Jaishankar

Speaking after receiving an honorary doctorate from IIM-Calcutta, Jaishankar said rapid shifts in global politics -- from supply-chain security to de-risking in technology -- were compelling countries to hedge more and revisit long-held strategic assumptions.

“The United States, which has long been the underwriter of the contemporary system, has set radically new terms of engagement. Not just that, it is doing so by dealing with countries on a one-on-one basis, rather than through regimes,” he said.

He added that China had “long played by its own rules” and was now doing so even more assertively. “In the ensuing scenario, other nations are unclear on whether their attention should be on their visible competition or the trade-offs and understandings that punctuate them,” he said.

Jaishankar said the broader global picture was also shifting rapidly. “Europe and Asia are reassessing their respective strategic predicaments. The Middle East has undergone a transformation. Africa’s growth potential is being recognised more widely, and new opportunities are emerging in Latin America,” he said.

Conflicts and climate events, he said, were further increasing the risk of disruption. “When it comes to energy, the US has gone from being a major importer to a significant exporter of fossil fuels. At the same time, China dominates the world of renewables.”

On the financial side, he flagged the proliferation of new pressures. “The prolific application of sanctions, the seizure of assets and the advent of blockchain-based technologies are today part of the new realities.”

After outlining the global landscape, Jaishankar said India was responding by strengthening “comprehensive national power”, reducing vulnerabilities and expanding its influence.

He underscored that technology, trade and talent mobility had become central to diplomacy, with India’s rise tied to securing global access in these domains.

“A major power, that too, one with higher aspirations like us, must have a significant industrial base. Unfortunately, this was not an assumption necessarily accepted by policy-makers before 2014,” he said, taking a swipe at previous governments.

Highlighting India’s digital public infrastructure, expanding connectivity and push for advanced manufacturing, Jaishankar said these capabilities would define India’s ability to navigate a turbulent world.