Always be ready for new risks: S Jaishankar

S Jaishankar, External Affairs Minister of India, shared insights on navigating new risks and uncertainties in a world with geopolitical tensions at The Economic Times World Leaders Forum. He emphasized the importance of "de-risking" and diversifying in response to increasingly volatile trade and supply chains. Jaishankar stated that the era of just-in-time supply chains is over, and a just-in-case approach is now necessary.

In a fireside chat with ET's Pranab Dhal Samanta, the minister highlighted the distortions in energy, fertiliser, and shipping markets due to choke points created by geopolitical conflicts. He stressed the need for trust and diversification, assuming that disruptions may arise and incorporating this into business plans.

Jaishankar pointed out that two major conflicts are ongoing, one in its fifth year and the other without a foreseeable resolution. He noted that choke points signify dominance by certain countries or groups, who may deploy this power without concern for consequences.

Regarding India's management of energy supply chain challenges, the minister mentioned that the government successfully diversified supply sources from 25 to 40 during the Hormuz crisis. He added that India has risen to global challenges in energy trade, supply chains, fertilisers, and food.

On China relations, Jaishankar advocated for stability in border areas to foster good relations between India and China. He suggested potential economic collaborations between the two nations, emphasizing that India and China are both significant global players and should engage in business.

In discussing the US-China G2 concept, Jaishankar described it as fundamentally competitive but also potentially collaborative, depending on which approach serves India best. He acknowledged Pakistan's unique position due to its systematic use of terrorism against neighbors, which impacts public opinion in India.

Regarding the Mecca Defence Pact between Saudi Arabia, Pakistan, and Turkey, Jaishankar clarified that the countries are not necessarily aiding each other in a live war situation. He noted India's unique position with strong ties to Iran and Israel, which differ from Pakistan's approach.

Jaishankar also addressed the importance of securing India's neighborhood, which has been volatile in recent years. He highlighted the positive view of India among Sri Lankans in a Pew poll, expressing pride in this sentiment. Lastly, he discussed Bangladesh's request for the extradition of former Prime Minister Sheikh Hasina, emphasizing that any relationship must be mutually beneficial and respect both parties' interests.