Weaponisation of Economic Activities: A New Reality
In a thought-provoking statement during the Raisina Dialogue, India’s Foreign Minister S. Jaishankar highlighted the growing trend of countries weaponising economic activities, including tariffs and sanctions. This shift signifies a less restrained culture in international relations compared to a decade ago.
The Current Economic Landscape
Jaishankar pointed out, “Whether we like it or not, they are a reality. Countries use them.” He noted that the past decade has witnessed a significant weaponisation of various economic capabilities, such as financial flows, energy supplies, and technology. This trend is particularly relevant as the global economic landscape continues to evolve.
India’s Trade Negotiations with the US
India, having a substantial trade surplus with the United States, is currently engaged in negotiations to secure a trade deal amidst the looming threat of reciprocal tariffs from the Trump administration. The minister emphasized the importance of navigating these challenges effectively. One strategy he mentioned is to “stay on the right side of the weapon so you don’t get hit.”
The Implications for Global Trade
As countries increasingly turn to economic measures as tools of foreign policy, businesses and governments alike must adapt their strategies. Understanding and anticipating these changes can help mitigate risks and seize opportunities in this new economic environment.
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In conclusion, as the world grapples with the weaponisation of economic activities, it is imperative for nations to navigate these complexities with foresight and strategy. The evolving nature of international relations demands a proactive approach to ensure continued growth and stability.
