External Affairs Minister (EAM) S. Jaishankar has underlined the growing role of tariffs and sanctions in international relations, acknowledging that they have become an unavoidable aspect of global diplomacy. Speaking at a high-profile event, Jaishankar emphasized that while many countries may not like these economic measures, they are now a fundamental part of geopolitical strategy. His comments come at a time when global economic policies are increasingly shaped by trade restrictions, protectionist measures, and financial penalties imposed by powerful nations.
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Tariffs and Sanctions: A Double-Edged Sword in International Politics
Jaishankar elaborated on how tariffs and sanctions are not merely economic decisions but strategic tools used by nations to gain leverage in global affairs. He pointed out that these measures are often applied selectively, targeting specific countries to influence their policies or economic stability. The increasing reliance on such tools, particularly by Western nations, is reshaping international trade patterns and diplomatic relations.
For instance, the U.S. has frequently used economic sanctions to pressure nations such as Russia, China, and Iran. More recently, India has also found itself navigating a complex landscape where trade restrictions and tariffs have been employed by major economies to assert dominance. The challenge for India, Jaishankar noted, is to adapt to this changing environment while safeguarding its national interests.
The U.S.-India Trade Dynamic: Challenges and Adjustments
Jaishankar’s remarks come at a crucial time when the United States is imposing new tariffs on various nations, including India. The Biden administration has continued some of the trade policies set by the previous Trump administration, maintaining tariffs on specific Indian goods. These measures have impacted multiple sectors, including technology, manufacturing, and agriculture, prompting India to seek alternative trade agreements and expand its partnerships with other nations.
In recent years, India has been actively negotiating trade deals with the European Union, the United Kingdom, and Australia to counterbalance the effects of U.S. tariffs. Jaishankar stressed that while such economic restrictions pose challenges, they also open avenues for India to explore new markets and strengthen regional trade alliances.
Impact on Global South: A Concern for Developing Economies
One of the key concerns raised by Jaishankar was the disproportionate impact of tariffs and sanctions on developing economies. He noted that while powerful nations can impose trade barriers with minimal consequences for themselves, smaller and developing nations often bear the brunt of these policies. Many countries in Africa, Latin America, and South Asia face economic instability when subjected to such restrictions, limiting their ability to compete in global markets.
India, as a leader in the Global South, has been vocal in advocating for fairer trade policies that do not unfairly disadvantage emerging economies. Jaishankar reaffirmed India’s commitment to working with international organizations, including the World Trade Organization (WTO), to push for more equitable trade practices.
India’s Strategy: Strengthening Trade Relations Beyond the West
In response to increasing economic restrictions, India has been diversifying its trade partnerships. Jaishankar highlighted India’s efforts to build stronger economic ties with countries in Asia, the Middle East, and Africa. Agreements with nations like the UAE, Japan, and Indonesia have helped India reduce its dependence on Western markets, allowing for greater economic resilience.
Additionally, India has been actively participating in multilateral trade forums such as the BRICS bloc and the Shanghai Cooperation Organization (SCO) to counterbalance Western influence in global trade policies. The country is also exploring greater cooperation with regional powers like Russia and China, despite geopolitical tensions, to ensure stability in supply chains and energy security.
India’s Stance on Economic Sovereignty and Self-Reliance
Another important aspect of India’s response to economic sanctions and tariffs is the push for self-reliance. Under the “Atmanirbhar Bharat” (Self-Reliant India) initiative, the Indian government has been promoting domestic manufacturing and reducing reliance on imports, particularly in critical sectors such as defense, electronics, and pharmaceuticals.
Jaishankar reiterated that while global trade remains essential, India must ensure that it is not overly dependent on any one country or region. He pointed to the lessons learned during the COVID-19 pandemic when supply chain disruptions exposed vulnerabilities in India’s reliance on foreign markets. Strengthening local industries and promoting indigenous production remain key priorities for the Indian government moving forward.
Moving Forward: A Pragmatic Approach to a Changing Global Order
Jaishankar’s remarks reflect India’s pragmatic approach to international trade and diplomacy. While acknowledging the challenges posed by tariffs and sanctions, he emphasized that India is actively adapting to these realities through strategic partnerships, diversification of trade, and a strong push for self-reliance.
As the global economic landscape continues to evolve, India’s ability to navigate these complexities will be crucial in maintaining its growth trajectory. By leveraging diplomacy, fostering regional trade alliances, and investing in domestic industries, India aims to position itself as a resilient and influential player in the world economy.
Jaishankar’s statements serve as a reminder that economic tools like tariffs and sanctions will remain central to global politics. However, with careful planning and a balanced approach, India is well-positioned to turn these challenges into opportunities.
By – Nikita
