Jaishankar: Political and Strategic Factors Increasingly Drive Global Economic Choices Amid Turbulence

Global Economic Landscape Undergoing Profound Transformation

External Affairs Minister S. Jaishankar declared on Tuesday, February 17, 2026, that political and strategic considerations are set to increasingly overshadow purely economic factors in the decisions nations make. Addressing the Global Economic Cooperation 2026 summit in Mumbai, organized by the Future Economic Cooperation Council, Jaishankar characterized the current era as a volatile and uncertain period, potentially 'the most turbulent in living memory'.

The Minister emphasized that 'economics will give way to politics and security when it comes to making choices, and technology will be even more transformative than ever before'. He noted that 'long-standing assumptions and expectations have now been questioned', with key dimensions—political, strategic, economic, and technological—transforming simultaneously.

Weaponisation of Economic Activities and Strategic Imperatives

Jaishankar highlighted a significant shift in the global order, pointing to the 'weaponisation of production, finance, leveraging of market shares and tightening of export controls'. He also cited fresh uncertainties arising from bilateral tariffs. These developments, he explained, underscore that economic security is now intrinsically linked to stronger self-reliance and the cultivation of trusted partnerships.

The Minister outlined six defining features of the current international landscape:

• The United States' determination to re-industrialize at any cost.
• China's unabated and potentially expanding manufacturing and export focus.
• Intensifying and polarizing technology competition.
• Significant redefinition of energy trade flows.
• New mindsets encouraging greater risk-taking, including through military means.
• Migration and mobility becoming increasingly contentious issues.

Lessons drawn from the COVID-19 pandemic and conflicts in Ukraine and West Asia have exposed critical vulnerabilities in concentrated production networks and supply chains, further necessitating a strategic re-evaluation of economic policies.

India's Proactive Stance and Position of Strength

In response to this turbulent global environment, Jaishankar articulated India's strategy, which involves building national capabilities, comprehensively addressing growth challenges, and dealing with both short-term issues and long-term prospects. He affirmed that 'the reform express will continue to roll on'. India is actively pursuing self-reliance and developing itself as a manufacturing base, with a strong emphasis on the 'Make in India' initiative.

The External Affairs Minister asserted that India is engaging international partners more intensively and from a 'position of strength'. This is evidenced by recently concluded trade deals and ongoing negotiations, including significant pacts with countries like the UK, New Zealand, and Oman, as well as negotiations for a free trade agreement with the European Union. He stressed that India's foreign policy is guided by a 'people-centric vision' and a blend of strategic and economic considerations.

Navigating a 'Long Twilight Zone'

Jaishankar concluded by describing the transition in the global order as 'messy, risky, unpredictable, perhaps even dangerous', suggesting that elements of the old and emerging systems will coexist for some time, leading to a 'long twilight zone'. He underscored that solutions for nations lie in de-risking and diversifying across multiple domains, an approach increasingly visible in national policies and enterprise choices.