"Politics has conquered the global economy'' - Minister Jaishankar's 'Danger Code' speech

Amid ongoing trade tensions between India and the US, External Affairs Minister S. Jaishankar has spoken out about the global risks facing economies in the current era.

IIM Calcutta conferred an honorary doctorate on External Affairs Minister S Jaishankar. Speaking at the event, Minister Jaishankar said, "We live in a time where politics can transcend economics. This is an uncertain world. This is not just a word...

The United States, a long-standing guarantor of the modern trading system, is aggressively setting new rules of engagement. It is doing this by treating each country individually, rather than under common rules.

For example, China has long traded with the United States on its own terms, and continues to do so. However, due to the political positions of both countries, many problems in this trade are systematically raised (through tariffs).

Other countries, facing the pressures of globalization and supply insecurity, are responding by protecting themselves against all unforeseen complications, for the sake of their national security and needs.

A third of global manufacturing now takes place in China, highlighting the shortcomings in the resilience and reliability of supply chains.

Ongoing conflicts and climate change events around the world have increased the potential for disruptions in supply chains.

India is currently rapidly closing the gap with some successful Asian economies in terms of infrastructure such as highways, railways, aviation, ports, energy and power.

"By any standards, we are now making progress. The world is watching the progress India is making. So, with this in mind, today we are considering creating new trade arrangements and promoting new connectivity initiatives," he concluded his speech.