External Affairs Minister S Jaishankar has said India does not get a “level playing field” in China, flagging major economic concerns with Beijing even as New Delhi explores the possibility of easing restrictions on Chinese investments. He also struck an optimistic note on trade negotiations with Washington, saying the India-US deal was moving in the right direction.
Speaking at the Bloomberg New Economy Forum in New Delhi, Jaishankar said officials from India and the US were working through the remaining issues in trade negotiations, with the discussions appearing to be closer to a resolution.
“My sense is that this is an issue which is heading towards a landing point,” Jaishankar said, referring to the ongoing trade talks.
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The External Affairs Minister’s remarks come as Washington seeks to reindustrialise its economy and reset the terms on which other countries access the US market. Jaishankar said tariffs were central to this broader shift in American trade policy.
“The U.S. is today determined to reindustrialise and to reset the terms of access to its economy, and that’s what the whole tariff debate is about,” he said.
Jaishankar added that India’s trade negotiations with the US would also have to be assessed against the terms Washington offers competing economies. However, the picture remains uncertain as several countries are yet to finalise their trade arrangements with the US.
Officials from the US Trade Representative’s office and India’s Commerce and Industry Ministry are working to resolve the outstanding issues, he said.
Beyond trade, Jaishankar said countries around the world would have to reassess their relationships with the US as Washington changes the way it engages with other nations.
“The United States has repositioned itself. You know, it’s changed the manner in which it engages the world, the basis on which it engages the world. So I think every country, in a way, has to recalculate and reset its relationship with the United States,” he said during a conversation with Bloomberg News Editor-in-Chief John Micklethwait.
Explaining India’s approach to the shifting geopolitical landscape, Jaishankar referred to his foreign policy formulation: “engage America, manage China, cultivate Europe, and reassure Russia”. He also included Japan in the broader framework.
Jaishankar said the formulation, which he developed in 2020 amid developments such as Brexit, Donald Trump’s election and growing opposition to globalisation, was intended to capture India’s foreign policy priorities in a few words.
He also noted that Washington itself was reviewing its alliances and reconsidering the terms of its treaty commitments. India, however, does not have a formal alliance with the US, and its relationship with Washington is instead based on a strategic partnership, he said.
Jaishankar’s comments on China highlighted the economic challenges in the bilateral relationship, with India continuing to face concerns over market access and the competitive environment for businesses.
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While New Delhi is considering the possibility of easing curbs on Chinese investments, Jaishankar’s remarks underscored that economic engagement with Beijing remains a complex issue.
He also said he hoped the India-European Union free trade agreement would come into force in the coming months, signalling New Delhi’s continued focus on diversifying its economic partnerships.
On defence imports from Russia, Jaishankar said India had no concerns over the presence of Chinese technology in Russian defence equipment.
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