Jaishankar Emphasises Doing Business with China While Building Domestic Manufacturing
External Affairs Minister S Jaishankar has stated that India must conduct business with the entire world, including China, while simultaneously developing its domestic industrial and manufacturing strength to compete effectively on the global stage. Speaking at the Economic Times World Leaders Forum, the minister highlighted the necessity of dealing with Beijing from a position of confidence and addressing past policy shortcomings in Indian industrialisation.
What Happened
Addressing the forum, Jaishankar addressed the complex dynamics of India-China economic interactions following years of diplomatic friction. He noted that bilateral relations went through a difficult period between the summer of 2020 and the autumn of 2024, primarily stemming from the border situation. Despite these strains, he observed that both nations remain major economies, serve as markets for one another, and maintain links through international supply chains.
Jaishankar explained that trade and economic interactions with China will continue, with the primary purpose of such engagement being the modernisation of India’s economy and the development of domestic capabilities. He pointed out that while China industrialised earlier, faster, and on a larger scale, India missed significant opportunities to expand its industrial and manufacturing capacity for nearly half a century beginning in the 1960s. The current imperative, he said, is to rectify those past shortcomings and build a more self-reliant economy capable of competing with China and other major powers.
The minister also confirmed that the Indian government has taken note of difficulties encountered by Indian business personnel in securing Chinese business visas and has formally taken up the issue.
Key Highlights
- Global Economic Engagement: India must do business across the globe, including with China, while approaching the relationship with confidence.
- Border Friction Timeline: Bilateral ties experienced a particularly challenging phase between the summer of 2020 and the autumn of 2024 due to border tensions.
- Addressing Industrial Gaps: India lost approximately 50 years starting in the 1960s without sufficiently building its manufacturing base, creating shortcomings that must now be resolved.
- Visa Challenges: The government has officially raised concerns regarding Indian businessmen facing hurdles in obtaining Chinese business visas.
- US-China G2 Concept: Jaishankar advised caution regarding the narrative of a US-China “G2,” describing their relationship as fundamentally competitive at its core, even if they cooperate or remain indifferent in certain areas.
Why This Matters
According to the minister, competing with China does not equate to disengagement. Instead, it requires strengthening domestic capabilities so India can participate in trade and global supply chains on equal footing. Developing manufacturing and self-reliance is framed as essential for India to stand its ground economically, mirroring how it has handled challenges on its borders.
Furthermore, both nations retain a shared strategic and political interest in maintaining stable ties, which Jaishankar noted would enable greater economic cooperation between two of the world’s largest markets.
What to Watch Next
Key developments to observe based on the minister’s remarks include:
- Bilateral responses regarding the business visa issues raised on behalf of Indian entrepreneurs.
- Policy measures aimed at strengthening domestic manufacturing to bridge historical industrial gaps.
- The progression of bilateral stability following the difficult patch observed between 2020 and 2024.
Frequently Asked Questions
Did Jaishankar advocate ending trade with China?
No. Jaishankar explicitly stated that India must do business with the entire world, including China, emphasising that trade and economic interactions will continue while India develops its own capabilities.
What did Jaishankar say about the US-China “G2” concept?
He advised caution when using the term “G2,” noting that the relationship between the United States and China is fundamentally competitive, though they may collaborate in specific areas or remain indifferent in others.
Why did India lag behind China in industrialisation according to the minister?
Jaishankar noted that China industrialised earlier, faster, and at a larger scale, whereas India lost nearly half a century beginning in the 1960s by not sufficiently developing its manufacturing and industrial strength.
Source: Statements delivered by External Affairs Minister S Jaishankar at the Economic Times World Leaders Forum, as reported by The Economic Times.