“Jaishankar Takes Subtle Swipe at US, Says Politics Overshadows Economics in Trade Talks”

Jaishankar Says Politics Trumps Economics, Emphasizes Supply Diversification Amid US Trade Tensions.

External Affairs Minister S. Jaishankar on Saturday suggested that politics increasingly “trumps” economics, in a veiled reference to the United States amid ongoing trade tensions. Speaking in Kolkata after receiving an Honorary Doctorate from IIM-Calcutta, he stressed the need for India to diversify supply sources to safeguard national interests.

“This is an era where politics increasingly trumps economics, and that is not a pun. In an uncertain world, it is all the more important that we continuously diversify supply sources to guarantee our national needs,” Jaishankar said.

His remarks come against the backdrop of recent US tariffs, including a 50% duty on certain Indian imports. He highlighted the changing nature of Washington’s policy, noting that the US, long a global underwriter, is now engaging with countries on a one-on-one basis.

India and the US are negotiating on two parallel tracks—one addressing tariffs and the other aiming for a comprehensive trade agreement. Despite tensions, India’s exports to the US have declined less than expected, with officials saying the country has “avoided the worst impact” and is prepared to wait for a favourable deal. The two nations aim to double bilateral trade to USD 500 billion by 2030, up from USD 191 billion.

Jaishankar also commented on global supply dynamics, noting China’s longstanding independent approach and the fragmented global landscape it contributes to. This has prompted many nations to hedge strategies amid trade-offs and global uncertainties.

“India has been actively pursuing self-reliance and building a strong industrial base. Our advancements in infrastructure, manufacturing, and science are positioning the country for a developed India by 2047,” he said.

He underscored the importance of supply chain resilience, especially with conflicts and climate events affecting global production. With a third of manufacturing concentrated in China, he emphasized that India’s improvements in transport, energy, and power infrastructure are critical for industrial growth.

Jaishankar concluded by highlighting India’s proactive diplomacy and its focus on advanced manufacturing—from semiconductors to electric vehicles, drones, and biosciences—as central to achieving a strong industrial and global footprint.