In a recent statement, External Affairs Minister S Jaishankar warned against an over-reliance on a single supply chain and emphasized the need for India to maintain a balanced approach in its commercial dealings with China. Speaking at a function hosted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), he emphasized that although doing business with China is important, it is also critical to think about the wider ramifications for the Indian economy, especially for MSMEs.
China is a major role in many supply chains, as Jaishankar noted, accounting for almost one-third of global manufacturing. He issued a warning that an excessive dependence on Chinese supply chains would cause some Indian industries to be “hollowed out,” making the nation more susceptible to outside economic influences. “We are saying, think about it, weigh it, and look at the bigger-term implications, but nobody is saying don’t do business [with China],” he said.
The minister also talked about how India and China have had a tense political relationship lately, especially because of border disputes. Jaishankar emphasized the significance of continuous communication to address the remaining sources of contention along the Line of Actual Control (LAC), despite considerable progress in resolving these concerns. Even though there have been advancements, he said that in order to successfully manage future partnerships, more in-depth conversations are required.
Jaishankar talked about India’s ties with other superpowers, such as the US and Russia, in addition to his remarks on China. He emphasized the need for India to have more access to Russian markets in the face of current trade imbalances and voiced hope about using India’s favorable position with the next U.S. administration to further deepen bilateral ties.
