Jaishankar flags concerns over economic weaponisation and over-concentration of manufacturing

Jaishankar made the remarks at the India-Italy Business, Science and Technology Forum in New Delhi, on Friday. File pic

External Affairs Minister S Jaishankar on Friday flagged concerns over growing unpredictability in global political and economic order, especially the weaponisation of economic activities and over-concentration of manufacturing. He said India has been working closely with like-minded partners to build resilient and trusted partnerships which are needed to address the country's economic interests as well as its strategic priorities.

The external affairs minister made the remarks at the India-Italy Business, Science and Technology Forum in New Delhi. It was also attended by Italian Deputy Prime Minister Antonio Tajani.

"We meet today in a familiar global political and economic order, but one that is transforming, becoming more complex and unpredictable," he said. "Even as we recover from the pandemic, multiple conflicts in Europe, Middle East and Asia, we must recognise that our supply chains are more fragile and our maritime shipping more disrupted," he said.

"Geopolitical competition has sharpened as market shares are leveraged and economic activities weaponised. Indeed, the over-concentration of manufacturing and the reliability of supply chains have today become overriding concerns," he said. The external affairs minister said industry and governments are struggling to keep pace with the impact of rapid digitalisation and technological shifts, accentuated by trade barriers and export controls. "Countries across the world are understandably de-risking by building strong political and economic partnerships, by diversifying their manufacturing and trade partners, and by investing in innovation and research," he said. "We are both witnessing these trends at home," he added.

Jaishankar said India has been working closely with like-minded partners to build such resilient and trusted partnerships in recent years. "For us, Italy ranks high in that list. In many sectors, there is a natural complementarity that we need to exploit," he said. "Whether it is energy or transport, food processing or light engineering, you have the technologies and best practices that make such collaboration fruitful," Jaishankar added.

He also referred to the proposed India-Middle East-Europe Economic Corridor (IMEEC). The landmark initiative will create a truly new global axis for economies, energy resources and communications, he said. The IMEC initiative was firmed up on the sidelines of the G20 Summit in Delhi in 2023. Billed as a pathbreaking initiative, the IMEC envisages a vast road, railroad and shipping networks among Saudi Arabia, India, the US and Europe with an aim to ensure integration among Asia, Middle East and West.

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