Eye on China, Jaishankar pitches ‘national security filters’ for economic decisions
Like it or not, we are increasingly in an era of leveraging, if not of weaponisation, external affairs minister S Jaishankar said at the CII event
NEW DELHI: In an era of leveraging and weaponisation of trade and business, policymakers have to use “national security filters” for economic decisions, including those related to investments, external affairs minister S Jaishankar said on Monday.
Though Jaishankar did not directly refer to any country during his speech at the Confederation of Indian Industry (CII) Partnership Summit 2024, his remarks appeared to be aimed at China, with which India recently agreed on steps aimed at ending the military standoff on the Line of Actual Control (LAC).
“Like it or not, we are increasingly in an era of leveraging, if not of weaponisation. Policymakers, therefore, have to place national security filters when it comes to economic decisions, including those of investment. This is the trend the world over and we would ignore it at our own peril,” Jaishankar said during a session with the theme of “India and the world: Partnerships for progress”.
The digital era has intensified the need to forge trusted partnerships and data is “much bigger than just the new oil”, while artificial intelligence (AI) will transform the way people live, work and think. “This has consequences across the board, including understandably how to develop the requisite capacities,” he said.
India cannot be left out of the game if it wants to realise its ambitious national goals. “On the one hand, this means greater data awareness and sensitivity. On the other, it mandates investment in and development of related capabilities. The semiconductor domain is one such example, electric mobility is equally another,” he said.
“Inorganic endeavours” to grow rapidly will require collaboration with trusted partners and these domains are such that “there has to be an understanding of it beyond just business”, he said.
The advent of the second Donald Trump administration in the US is a major consideration in business circles, though the “only safe prediction is a degree of unpredictability”, Jaishankar said. Countries have had their own experiences from the first Trump administration, and as far as India is concerned, “I can state with confidence that the strategic convergences with the US have only grown deeper with time”, he added.
These convergences have created an environment in which “more collaborative possibilities can be explored”, and there will “always be some give and take” between India and the US, Jaishankar said.
“When we look at economic or technology domains, the case for trusted and reliable partnerships has actually increased in recent years. A lot of what lies ahead would be in fashioning terms of engagement that are perceived as mutually beneficial… the more that India can bring to the table, the stronger our appeal,” he said.
For India, the mobility of professionals has emerged on the global agenda as an area of cooperation and many realise that the assured availability of talent is the “X-factor in a knowledge economy”, he said. “Where India is concerned, it is imperative to prepare for a global workplace. In fact, this will happen with or without us; it is better that we consciously shape it to our advantage,” he added.
It is essential to expand exposure to foreign languages and cultures, and preparation and access to workplaces can be facilitated through understandings between governments. “These are today’s key goals for Indian diplomacy,” Jaishankar said.
Elaborating on how recent global events, including the Covid-19 pandemic, US-China frictions and the Russia-Ukraine conflict, have made the world more insecure, Jaishankar stressed the need for trusted and reliable partnerships and more natural collaborations for India, especially with its neighbourhood.
Jaishankar also emphasised the need for growing manufacturing at scale and efficiency for India to become a credible partner abroad. As part of these efforts, India has addressed challenges in logistics and infrastructure and established 12 new industrial nodes.
On India’s strategy for free trade agreements (FTAs), Jaishankar said that while these offer possible benefits and avenues for partnerships, there is also the challenge of unfair, subsidised and large-scale competition from external exposure, especially for low-income countries with small producers.
“Yet, it would be unwise to forego opportunities and limit access. The working principle, therefore, has to be one of proceeding with caution. In recent years, we have progressed with the EFTA nations, UAE, Australia and Mauritius,” he said.