External Affairs Minister S. Jaishankar, while emphasizing the importance of engaging with China due to its pivotal role in the global supply chain, warned about the need to strike the “right balance.” He cautioned that unchecked reliance on foreign goods could lead to domestic sectors being “hollowed out.”
Speaking at the ‘Bharat @100’ event organized by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Thursday, Jaishankar highlighted that China accounts for 32-33% of global manufacturing and stressed the risks of “excessive dependency” on a single supply chain.
Responding to a query about China’s dominance in supply chains, he outlined two key points. “There are global supply chains, and when one single country accounts for 32-33 per cent of global manufacturing, then it is logical that many supply chains will go to that country, and this is a reality which we will have to factor into our calculations. But it is also a fact that if we become excessively dependent on a single supply chain or in the name of supply chains you open up your markets so that it is no longer the supply chains but your sectors are getting hollowed out, you have to be careful there,” he explained.
Must Read: NASA Astronaut Sunita Williams Cultivates Lettuce in Space to Advance Agricultural Research
Jaishankar further underlined the importance of evaluating “long-term implications” for Indian industries, particularly MSMEs, while engaging with China. “We don’t want to end up as a market of another economy and not be able to compete with their products which are dumped in our country. So we have to find the right balance here,” he asserted.
He also touched upon the broader context of India-China relations, acknowledging the challenges posed by strained ties in recent years due to border issues. “Now there is a second problem. For the last four and a half years, our political relationship with China has not been good because of the situation at the border,” he noted.
Reflecting on the complexities of the relationship, he added, “There are no black-and-white answers in very sharp terms. I think everything needs to be balanced. I would advocate that with China.”
Jaishankar’s remarks come a day after he addressed Parliament on India-China relations, reaffirming India’s commitment to resolving boundary issues through bilateral discussions. “India remains committed to engaging with China through bilateral discussions to arrive at a fair, reasonable and mutually acceptable framework for a boundary settlement,” he had stated.
