MUMBAI: External Affairs Minister S Jaishankar has said that India, as the world’s fifth-largest economy, must necessarily develop a broad and diverse set of energy relationships.
After decades of hearing the virtues of globalisation, the world today is grappling with the reality of industrial policies, export controls and tariff wars, Jaishankar further said at a Business Today event here on Saturday.
Ensuring a favourable energy environment for coming decades is understandably one of India’s key diplomatic objectives, he said.
Beyond fossil fuels, it extends to developing and deploying renewables on a large scale as well as exploring the potential of small modular reactors, the EAM added.
“The fifth biggest economy of the world must necessarily develop a broad and diverse set of energy relationships,” Jaishankar said.
The Indian embassies now are far more active than before in the pursuit of the country’s commercial interests. They inform, advise and facilitate wherever possible to “ensure that our businesses do well”, he said.
“A policy decision that has significant economic implications in recent years was our assertion of energy choices in the aftermath of the Ukraine conflict. The truth was every nation did what was in their self-interest even (though) some professed otherwise,” he said.
Jaishankar was apparently referring to India importing oil from Russia during the Ukraine conflict which was criticised by a section of the West.
A large economy like India needs an overall strategy, Jaishankar noted.
India is among the few nations that can simultaneously engage with Russia and Ukraine, Israel and Iran, the democratic west, the global south, the BRICS and the QUAD, he said.
While BRICS is a forum for cooperation among a group of leading emerging economies, including India, QUAD is a diplomatic partnership between Australia, India, Japan and the United States.
Jaishankar said today’s world is grappling with the reality of industrial policies, export controls and tariff wars after hearing the virtues of globalisation for decades.
In such a scenario, it is essential to identify advantages and trends and adapt one’s policies accordingly, he said.
The minister said there is a widespread concern today about de-risking the global economy. The solution lies in more diversified manufacturing, more innovation and technology and stronger trade including those that pertain directly to food and health security, he said.
“Put together, what means is reglobalisation that is fairer, that is more democratic, that is less riskier than its earlier model,” he said.
There is a reordering happening right now, both in terms of location and flows. India must strive to capture its benefits to the extent possible, he observed.
The digital world has an even greater sense of insecurity when it comes to sourcing and collaboration. Where data is sourced, where it is processed and how it is deployed are a matter of crucial importance as the world enters the era of AI (Artificial Intelligence), Jaishankar said.
The logic of the market has to be balanced by the compulsions of privacy and security. Stronger political relationships become a factor in calculations, putting efficiency, talent and such comfort together, he added. PTI
