At the 4th Kautilya Economic Conclave (KEC 2025), External Affairs Minister Dr. S. Jaishankar offered a sweeping assessment of the world’s rapidly shifting geopolitical and economic landscape, describing it as a “paradoxical era” where global powers are simultaneously engaging in risk-taking while also striving to de-risk their political and economic systems.
Dr. Jaishankar observed that the world is experiencing a unique overlap of crises and opportunities, creating a high-stakes environment for global decision-makers. “The intensity of multiple happenings, actually converging on the global economy at the same time, is today setting into motion a paradoxical situation where, on one hand, the very factors encourage higher risk-taking. At the same time, because of the consequences of this, there is a serious effort also to de-risk every facet of both politics and economics,” he said. Using a vivid metaphor, he added, “It is almost like you are raising the height of the trapeze and removing the safety net with each passing day. That is the state of the international polity today.”
Addressing policymakers, economists, and industry leaders gathered at the conclave, Jaishankar highlighted the growing complexities of global governance, where economic ambitions are often constrained by geopolitical uncertainties. The Kautilya Economic Conclave, an annual platform organised to deliberate on key economic and strategic issues, witnessed discussions on inflation management, supply chain realignment, energy dependencies, and shifting trade alliances.
Turning to India-US trade relations, the minister underscored the ongoing challenges in reaching a balanced agreement. “We have issues with the United States today, mainly that we haven’t yet reached a landing ground in our trade discussions. This has led to certain tariffs being levied on us, which we have publicly said are unfair,” he stated. He recalled that former US President Donald Trump had imposed a 25% tariff on Indian shipments and another 25% tariff related to India’s purchase of Russian oil — measures that New Delhi continues to contest.
“There is also a second tariff related to sourcing energy from Russia, whereas other countries, even those with more adversarial relations with Russia, have done so,” Jaishankar remarked, adding that India and the US have already completed five rounds of negotiations for a Bilateral Trade Agreement (BTA), with the most recent round concluding at the end of September. He emphasised the need for a mutually respectful deal: “At the end of the day, there has to be a trade understanding with the United States because it is the world’s largest market, and also because much of the world has reached this understanding. It has to be an understanding where our bottom lines, our red lines are respected.”
Expanding on broader global strategic shifts, Jaishankar noted how sanctions and economic coercion have redefined international relations. “In recent years, we’ve seen a completely new level in the application of sanctions, even the seizure of sovereign assets. The rise of crypto, and competition for rare earths and critical minerals have become major factors shaping global rivalries,” he said.
He also reflected on the changing global energy landscape, observing a reversal of traditional dependencies. “One of the big changes in recent years is that the United States, which for decades worried about its external energy dependence, has not only become self-sufficient but is now a significant exporter of energy and has made it a key part of its strategic outlook,” he explained. “Just as the US has emerged as a champion of fossil fuels, China has established itself as a leader in renewables, so whichever path you take on renewables, all roads eventually lead there as well.”
Through his remarks, Dr. Jaishankar painted a picture of a world in flux — one where nations must strike a fine balance between ambition and caution, and where economic growth, strategic autonomy, and risk mitigation must coexist in a fragile global order.
