The Great Reversal: Jaishankar on How Politics Now Leads Economics in a Reshaped World

You know, it's not every day a seasoned diplomat comes out and pretty much declares that the global rulebook has been tossed out the window. But that's precisely what India's External Affairs Minister, S. Jaishankar, seems to be saying, and with quite a bit of conviction too. He recently pointed out, rather starkly, that the United States has, in his words, "set radically new terms of engagement" for the entire world. It's a seismic shift, really.

For decades, we operated under the assumption that, by and large, economics held sway. The prevailing wisdom was "economics trumps politics." Businesses would dictate, markets would open, and political considerations, while present, often took a backseat to the pursuit of profit and efficiency. Well, that era, according to Jaishankar, is decisively over. We're now living in a world where, if you ask him, "politics trumps economics." Think about that for a moment – it's a fundamental reordering of priorities.

This isn't just theoretical musing either. We're seeing it play out in very tangible ways. Take, for instance, the intense focus on building resilient supply chains – not just efficient ones, mind you, but resilient ones, often with national security implications baked in. Or consider the fierce competition for dominance in critical technologies, where access isn't merely about market advantage but strategic leverage. Even basic market access, once a given under globalization, is now increasingly subject to political calculations. The US, it appears, is quite prepared to wield its significant economic power to achieve strategic objectives, even if it means sacrificing a degree of economic efficiency in the process. It's a strong signal, no doubt.

Naturally, other nations aren't just sitting idly by. Some are actively pursuing what's called "strategic autonomy," trying to carve out their own independent paths in this increasingly fragmented landscape. Others, perhaps more cautiously, are adopting a "hedging" strategy, carefully balancing relationships with multiple powers without committing fully to any single bloc. It's a complex dance, and everyone's trying to find their footing.

And what about India amidst all this? Well, Jaishankar articulated India's approach quite clearly: it's about "multialignment," not the old "non-alignment." This means we're not tied to any one camp but are instead prepared to work with diverse partners on a case-by-case basis, depending on the specific issue at hand. There's also a strong emphasis on "Atmanirbhar Bharat," or self-reliant India. But let's be clear, this isn't about isolationism; it's about boosting our domestic capabilities and competitiveness so we can engage with the world from a position of strength, not weakness. We're certainly aware that we're living in a multipolar world, and our strategy reflects that reality.

Ultimately, the message is clear: the world is a much more uncertain, fragmented, and fiercely competitive place than it used to be. The unbridled pursuit of pure economic globalization, as we knew it, has given way to a more cautious, "de-risked," and often "re-shored" approach, where national security and resilience are paramount. It’s a truly profound shift, one that demands a fresh perspective from all of us.