‘Always had positive political view of India’: EAM Jaishankar on Trump 2.0 advantage

While some countries perceive Trump 2.0 as a challenge, Jaishankar highlighted India’s unique position. “We are not, and I think that separates us from a very large number of countries. We are in a much more advantageous position to translate 2.0 into a deeper relationship,” he stated.

However, he acknowledged potential challenges in the India-US dynamic, joking, “In my business, studying Trump is like an obsession.”

Jaishankar noted that Trump’s re-election would likely bring predictable shifts in US policies, such as a renewed emphasis on domestic manufacturing and a belief that many global partners have been unfair to America. This, he said, could result in renegotiating alliances and a more transactional approach from Washington.

He advised countries to adapt to a second Trump administration by focusing on shared benefits and identifying areas where the US needs its partners. This includes advanced technology sectors like semiconductors and supply chains, which are key to mutual cooperation.

Cautious approach to FTAs

Addressing India’s proposed free trade agreements (FTAs) with the European Union and the UK, External Affairs Minister S Jaishankar acknowledged the presence of certain non-trade complexities. “In the case of the EU, there are multiple members, each with their own interests. Harmonising these interests is a challenge. However, we believe that an agreement will ultimately benefit us,” he said.

Jaishankar highlighted that an FTA with the EU would significantly enhance India’s market access, describing European markets as both predictable and stable. “From an economic perspective, we should make substantial efforts to improve our access to Europe. In many ways, the risk factors there are much lower than in other regions,” he added.

The minister noted that the perception of India among key global economies has transformed dramatically over the last decade. He remarked that the third consecutive term of the Narendra Modi government has impressed numerous nations and global political leaders.

Discussing the role of micro, small and medium enterprises (MSMEs) in manufacturing, Jaishankar emphasised that this remains a top priority for the Modi government. “We need to establish more manufacturing zones, improve logistics, and enhance our competitiveness. While progress has been made, much more remains to be done,” he stated.

Jaishankar underlined the importance of safeguarding MSMEs against unfair competition, especially during FTA negotiations. He highlighted the government’s proactive approach in this regard, citing the ongoing review of India’s FTA with ASEAN. He explained that the current agreement has adversely affected sectors like agriculture and MSMEs, necessitating careful revisions to protect domestic interests.

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