National security shapes business decisions, says EAM S Jaishankar

Jaishankar says trust and strategic partnerships are key in today's economy

External Affairs Minister S Jaishankar said on Wednesday that business decisions are increasingly linked to national security.

 

“The world today makes business decisions factoring in national security in a manner in which it did not do so before, especially in the digital era,” Jaishankar said on the last day of this year’s Raisina Dialogue, a strategic affairs conference hosted by the Ministry of External Affairs and Observer Research Foundation.

 

Speaking during a session on the intersection of government and business, he said, be it tariffs or sanctions, the “weaponisation” of economic activity is now a reality – “countries use them”. “It could be financial flows, energy supplies, or technology. This is the reality of the world,” he said.

 

India would have to negotiate the best deals possible because “governments fight for their businesses,” he added. “You’re fighting for your comprehensive national power of which business makes a very important contribution.”

 

One way to handle the “weaponisation” of economic activity, he said, is “to stay on the right side of the weapon so that you don’t get hit.”

 

In the digital era, he noted, cost and efficiency are no longer the main drivers of business decisions. “It is about comfort. It is about trust.” He added that business conversations today revolve around “trust and reliable partnerships”.

 

India is currently engaged in three major trade negotiations with the European Union, the United Kingdom, and the United States. He described these countries as not only India’s growth markets and technology partners but also key destinations for Indian students and tourists. “These are, in many ways, our connectivity partners. They are our strategic partners.”

 

Since taking office in January, US President Donald Trump has said India must reduce its trade surplus — currently around $50 billion, according to MEA data — with the US. Trump, who has announced or threatened sanctions against various countries, said the US would like India to buy defence goods worth billions of dollars.