Over-reliance on China’s Supply Chain could Potentially Harm India’s National Interests: Jaishankar

While addressing the gathering, he acknowledged progress in resolving disputes along the Line of Actual Control (LAC) in eastern Ladakh, citing the recent resolution of several friction points. However, he stressed the need for further deliberations with China to address remaining challenges.

Jaishankar pointed out that China accounts for nearly 32-33% of global manufacturing, making it a pivotal hub for international supply chains. He urged Indian businesses to consider this reality but warned against excessive dependency.“It’s logical for several supply chains to pass through China,” he remarked, adding, “But if you rely too much on a single supply chain, there’s a risk of your market getting hollowed out instead of being diversified.” He urged industries, especially MSMEs, to weigh their long-term interests while engaging in trade with China.

The minister also highlighted the importance of protecting India’s domestic industries from potential exploitation. “India cannot afford to become just a market for another economy’s surplus, especially if it undermines our competitiveness,” he cautioned.Jaishankar also addressed disruptions in Red Sea shipping lanes caused by the ongoing crisis in West Asia. He expressed concerns over rising transportation costs due to rerouted shipments, emphasizing its economic impact on trade.India has engaged with major stakeholders, including Iran and Israel, while deploying naval ships to ensure maritime safety. “We are advocating for restraint, a ceasefire, and negotiations to prevent threats to our economic interests,” he said.

On India’s trade imbalance with Russia, Jaishankar revealed that New Delhi is pressing Moscow to open its economy further to Indian exports, particularly in pharma, marine, and agro-products.

“Non-tariff barriers likesanitary and phytosanitary (SPS) restrictions are hurdles we are actively working to overcome. Through persistence and dialogue, we aim to make tangible progress,” he remarked.

India continues to pursue a pragmatic andmulti-faceted approach in addressing geopolitical and economic challenges, reflecting its strategic priorities in both regional and global contexts.