External Affairs Minister S Jaishankar recently emphasised the need for India to maintain a balanced approach in its trade relations with China, warning against excessive dependency on a single supply chain. Speaking at an event organized by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), he highlighted that while engaging in business with China is essential, it is crucial to consider the broader implications for India's economy, particularly for Micro, Small, and Medium Enterprises (MSMEs).

Jaishankar pointed out that China accounts for nearly one-third of global manufacturing, making it a significant player in many supply chains. He cautioned that over-reliance on Chinese supply chains could lead to various sectors within India being "hollowed out," which would leave the country vulnerable to external economic pressures. He stated, “Nobody is saying don’t do business [with China], but we are equally saying, think about it, weigh it, and look at the bigger-term implications”.

The minister also addressed the strained political relationship between India and China over recent years, particularly due to border tensions. Although there has been some progress in addressing these issues, Jaishankar stressed the importance of ongoing dialogue to resolve remaining friction points along the Line of Actual Control (LAC). He remarked that while improvements have been made, deeper discussions are necessary to navigate future relations effectively.

In addition to his comments on China, Jaishankar discussed India's relationships with other global powers like the United States and Russia. He expressed optimism about leveraging India's advantageous position with the incoming U.S. administration to strengthen bilateral ties further and highlighted the need for India to secure better access to Russian markets amidst existing trade imbalances.