Key Takeaways
- India will pursue new trade deals with a strict “people-centric vision”
- Global trade is fragmenting as US and China set new rules
- Nations are increasingly hedging bets through bilateral agreements
- India is negotiating multiple trade pacts while avoiding larger blocs like RCEP
India’s External Affairs Minister Dr S Jaishankar has announced that New Delhi will continue forging new trade arrangements, but only under a firmly people-centric approach. This comes as India ascends the global economic hierarchy amid growing uncertainty in world trade patterns.
Global Trade Landscape Shifts
Speaking at IIM Calcutta after receiving an honorary doctorate, Dr Jaishankar described a fragmenting global order where traditional rule-makers are rewriting the script.
“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,” he said.
In this environment, most nations are hedging rather than choosing sides, leading to a surge in bilateral and regional free-trade agreements.
India’s Strategic Trade Approach
Dr Jaishankar emphasized that India’s trade efforts reflect both policy priorities and the importance the world attaches to ties with India. “As we ascend the global economic hierarchy, the case for them will only get stronger,” he told students and faculty.
However, he stressed caution, noting that trade exercises have long-term repercussions and must be approached with great judiciousness. “When it comes to trade, we will naturally be guided by our people-centric vision,” he affirmed.
New Realities Shape Foreign Policy
The minister highlighted several factors influencing India’s external posture:
- Supply-chain fragility with one-third of global manufacturing concentrated in China
- Energy transition challenges
- Sanctions and blockchain disruption
He identified trade, technology and tourism as the “3Ts” by which Indian diplomats now measure success, marking a clear shift toward economic diplomacy.
Broadened Security Definition
Dr Jaishankar expanded security beyond traditional defense to include energy, food, health and fertilizer security. He cited India’s rapid vaccine procurement during COVID-19 and alternative energy sourcing during the Ukraine war as evidence that “a responsive foreign policy can indeed deliver for every citizen.”
“In an uncertain world, it is all the more important that we continuously diversify supply sources to guarantee our national needs,” he emphasized.
India is currently negotiating or implementing trade agreements with the US, UK, Australia, UAE, EFTA countries and others, while strategically remaining outside larger blocs such as RCEP.
