MUMBAI: External affairs minister S Jaishankar expressed concern that the global order appears to be headed into a “prolonged twilight zone”, where elements of the old economic order will coexist uneasily with an emerging, more fragmented one. The transition, he said, is likely to be “messy, risky, unpredictable and even dangerous”, with economics increasingly subordinated to political and security considerations.
The minister said this shift is already visible in the growing use of bilateral tariffs, export controls and financial restrictions, which are creating fresh uncertainties on the demand side of global trade. Businesses are now facing not only supply chain vulnerabilities but also unstable market access and fluctuating overseas demand, affecting routine commercial decisions. In such an environment, he stressed, countries and enterprises must plan for sustained volatility by diversifying sourcing, production bases and export markets, while strengthening domestic resilience and trusted partnerships.
Speaking after inaugurating the three-day Global Economic Cooperation Summit in Mumbai on Tuesday, Jaishankar said nations must prioritise de-risking supply chains, strengthening domestic capacities and building trusted international partnerships to navigate a rapidly changing global order. He said long-standing assumptions about global stability are collapsing as strategic, political, economic and technological shifts occur simultaneously, making the present era unusually turbulent and unpredictable.
Listing six defining features of the current global order, he pointed to the United States’ push for re-industrialisation, China’s continued manufacturing and export expansion, intensifying technological competition, major shifts in energy trade flows, greater geopolitical risk-taking including military options, and rising tensions over migration and mobility.
Against this backdrop, Jaishankar said, India’s nimble domestic policies and pragmatic governance have helped the country navigate global disruptions. Political continuity and stability, he added, have enabled bold reforms at a time when many nations remain defensive.
He said lessons from the Covid-19 pandemic and conflicts in Ukraine and West Asia have exposed the fragility of global supply chains, highlighting excessive production concentration and connectivity limitations. The world is now witnessing the “weaponisation” of production, finance, market access and export controls, even as tariff uncertainties affect day-to-day commerce. “Countries, therefore, are increasingly prioritising food, health and energy security and also fertiliser security. Access to critical minerals will require stronger international collaboration,” he said.
Jaishankar emphasised that economic security today depends both on stronger self-reliance and deeper engagement with trusted partners. “For a large nation like India, these two goals are complementary. Stronger domestic capabilities attract more partnerships, reinforcing resilience and global trust,” he added.
Referring to the ‘Viksit Bharat’ goal, Jaishankar said India must simultaneously advance manufacturing and services, agriculture and industry, core and advanced technologies, infrastructure and innovation. “Major infrastructure expansion over the past decade across highways, railways, aviation, ports, energy and waterways, alongside improvements in health, education, skilling and digital public infrastructure is noteworthy. India’s digital governance platforms have significantly strengthened service delivery and inclusion,” the minister said.
On trade, Jaishankar noted that India has recently concluded or advanced multiple agreements with major partners across regions, improving market access while safeguarding sensitive sectors. He added that India’s demographic strength, skilled workforce and expanding global capability centres are enhancing its role in the global economy. Managed talent mobility agreements with partner countries will remain important for future growth.
Jaishankar said the past decade of governance reforms, digital expansion, financial inclusion and technology adoption has strengthened India’s global credibility. In an age of uncertainty, he asserted, India is emerging as a reliable economic partner contributing not only to global growth but also to stability and trust.