Global supply chains under strain due to conflicts, climate events: EAM says at IIM Calcutta Conferral Ceremony

Kolkata (West Bengal) [India], November 29 (ANI): External Affairs Minister S Jaishankar on Saturday highlighted the vulnerabilities of global supply chains, citing the impact of conflicts, climate events, and demand-side uncertainty. He highlighted that a third of global production currently takes place in China.

Speaking at the Doctor of Philosophy (Honoris Causa) Conferral Ceremony at IIM Calcutta, Jaishankar highlighted the volatility caused by the US tariffs

"A third of global production currently takes place in China. This has put the spotlight on the resilience and reliability of supply chains. Conflicts and climate events have added to the possibility of their 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. Where trade is concerned, supply-side risks are aggravated by demand-side uncertainty. The salience of tariff rates to trade prospects has obviously heightened volatility and as for finance, the prolific application of sanctions, the seizure of assets, and the advent of blockchain-based technologies are today part of the new realities," he said.

Jaishankar said that in a world full of tumultuous uncertainties, India will always prioritise its own interests.

He said, "In an uncertain world, it is all the more important that we continuously diversify supply sources to ensure, to guarantee our national needs. With these considerations in mind, we are today endeavouring to forge new trade arrangements and promote fresh connectivity initiatives. While they certainly represent key facets of our policy priorities, it also speaks for the importance that the world attaches to ties with India. As we ascend the global economic hierarchy, the case for them will only get stronger," he said.

"These exercises have long-term repercussions and therefore need to be embarked upon with great judiciousness. When it comes to trade, we will naturally be guided by our people-centric vision, just as our connectivity plans will be guided by strategic as well as economic considerations," he said.

Jaishankar highlighted the importance of industries, saying that a major power like India must have a significant industrial base.

"How does India respond to these new realities? Well, obviously, by pursuing policies and taking actions that advance our comprehensive national power, reduce our vulnerabilities, and promote our influence. Now the last two clearly constitute the core of our diplomatic activities. As India rises and our economy grows, we are preparing to shoulder more responsibilities in this regard. 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 policymakers before 2014," he said.

He further said that the 'Make in India' policy is aimed at promoting industrial growth.

"Promoting industrial growth and even incentivising it is today a key economic priority. The emphasis on 'Make in India' in the last decade speaks of a different mindset and greater ambition. For its full potential to be realised, the industry has to wholeheartedly partner and look beyond the short term. It must help build the domestic supply chain even as we seek to participate more in the global one. As it strikes roots, 'Make in India' is strengthened by research in India, innovate in India, and design in India," he said.

Jaishankar said that the US has been the underwriter of terms of engagement, and China has been doing the same.

"The United States, long 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. China has long played by its own rules and is now doing so even more. In the ensuing scenario, other nations are unclear on whether their attention should be on the 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," he added.

"The rest of the world responds by hedging against all contingencies. Even as it engages the United States and China directly, choices are avoided where feasible and choices are made when beneficial. Simultaneously, other options between themselves are explored with greater urgency. One sign of that is the uptick in the enthusiasm today for free trade agreements across geographies," he added.

https://x.com/DrSJaishankar/status/1994701113493524624?s=20

IIM Calcutta said that Jaishankar reflected on the transformative impact of emerging technologies, particularly the growing influence of artificial intelligence, and underscored the importance of preparedness in an evolving global landscape.

https://x.com/IIM_Calcutta/status/1994734933081006241?s=20

"IIM Calcutta had the honour of conferring the Doctor of Philosophy (Honoris Causa) upon Hon'ble Dr. Subrahmanyam Jaishankar, Minister of External Affairs, Government of India. In his address, Dr. Jaishankar reflected on the transformative impact of emerging technologies--particularly the growing influence of artificial intelligence--and underscored the importance of preparedness in an evolving global landscape. He emphasised the need to reduce vulnerabilities, adopt a more active national role, and strengthen domestic capabilities," IIM Calcutta said in its statement.

"Dr. Jaishankar shared his perspectives on India's strategic priorities, including the 3T approach--Trade, Technology and Tourism, and stressed that Atmanirbhar Bharat is ultimately a mindset. He expressed his gratitude to IIM Calcutta for conferring the honorary doctorate degree. The Institute was privileged to host this insightful and memorable occasion," the statement added. (ANI)

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