EAM Jaishankar calls for ‘national security filter’ for economic decisions

New Delhi, Dec 2 (PTI) There is a need to place "national security filters" for economic decisions, including those relating to investment, External Affairs Minister S Jaishankar said on Monday, in remarks that came amid increasing global concerns over China's aggressive trade practices.

"Like it or not, we are increasingly in an era of leveraging, if not of weaponization. Policy makers, therefore, have to place national security filters when it comes to economic decisions, including those of investment," he said.

"This is the trend the world over and we would ignore it at our own peril," Jaishankar said in an address at the Confederation of Indian Industry (CII) Partnership Summit 2024.

The external affairs minister said caution must be exercised in trade as the nature of commerce and supply chains in the world is such that orthodox precautions are not always adequate.

"Inorganic endeavours to rapidly grow will require collaboration with trusted partners. And that is exactly what we see as the beginnings underway," he said.

On Donald Trump's second term as the US President and the associated implications for India, Jaishankar asserted that India’s strategic convergences with the US have only grown deeper with time which offers many collaborative opportunities.

"The advent of the second Trump Administration is also obviously a major consideration in business circles. Obviously, the only safe prediction is a degree of unpredictability," he said.

Jaishankar said different countries have had their own experiences from the first Trump Administration and would presumably draw from that to approach the second.

"Where India is concerned, I can state with confidence that the strategic convergences with the United States have only grown deeper with time. They have created a larger environment in which more collaborative possibilities can be explored. Naturally, between two major economies, there will always be some give and take," he said.

Jaishankar also delved into broader aspect of free trade agreements (FTAs) and issues related to it.

"In any economic conversation, FTAs inevitably arise as a possible avenue of partnership. There is much truth in that, but equally, grounds for some caution," he said.

"A low per capita income country with small producers will have a natural reticence about excessive external exposure. This is all the more so if that exposure is to unfair, subsidised and large-scale competition.

"The nature of commerce and supply chains in the world is such that orthodox precautions are not always adequate. Yet, it would be unwise to forego opportunities and limit access," he said.

The working principle, Jaishankar noted, has to be one of proceeding with caution.

The external affairs minister also called for addressing the fragility of connectivity needs.

"The world has also seen a greater interest in developing alternative and redundant connectivity. The de-risking that is today at the heart of so many national policies also applies to logistics," he said.

"There are after all so many factors of volatility that the fragility of connectivity needs to be credibly addressed. Even in the last few years, we have seen it threatened by conflicts, extreme climate events or pandemics," he said.

Jaishankar argued that the current structure of connectivity is itself a "distortion" from the colonial era.

"Many natural flows were disrupted by colonial regimes acting in their own interest. Restoring them is an intrinsic aspect of economic rebalancing. For a variety of historical and geographical reasons, India occupies a crucial position," he said.

"Our ability to forge more connectivity partnerships will have a broader resonance," he said. PTI