Overdependence on sources of production major challege to global economy: Jaishankar in Brussels

External Affairs Minister (EAM) S Jaishankar stated on Wednesday that the international economy faces several challenges, including overdependence on sources of production, access to some markets, and connectivity.

Jaishankar was speaking at the inaugural India-Belgium Strategic Dialogue in Brussels.

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The EAM and his Belgian counterpart, Maxime Prevot, reviewed bilateral cooperation, including in political, economic, investment, clean energy, defence, mobility and pharmaceutical domains. They focused on opportunities in ports, maritime, semiconductors and broader cooperation for supply chain de-risking.

The discussions were held during the inaugural India-Belgium Strategic Dialogue in Brussels.

Jaishankar and Prevot also exchanged views on global developments, including in West Asia.

“Co-chaired with DPM and FM Maxime Prevot the inaugural India-Belgium Strategic Dialogue in Brussels today. Our partnership has witnessed significant deepening in recent years. Today’s discussions reflected the ambition of India’s ties with Belgium and the European Union,” Jaishankar said in a post on X after the meeting.

“Reviewed our cooperation including in political, economic, investments, clean energy, defence, mobility and pharmaceutical domains. Also focused on opportunities in ports, maritime, semiconductors as well as broader cooperation for supply chain de-risking. Had a useful exchange of perspectives on global developments including in West Asia,” he added.

Earlier in the day, EAM Jaishankar also met European Commissioner for International Partnerships, Ekaterina Zaharieva, discussing opportunities for research in clean and green energy technologies, innovation hubs, startups and association with Horizon Europe.

The EAM also held a meeting with Jozef Síkela, European Commissioner for International Partnerships, with discussions focusing on advancing cooperation in connectivity, trilateral partnerships, IMEC and green shipping.

In his opening remarks at the India-Belgium Strategic Dialogue with his counterpart Maxime Prevot, Jaishankar remarked that the tensions happening around the world cannot be contained regionally and have a cascading impact.

“The international situation today really warrants countries like ours, which have a close relationship, to engage with each other more deeply. It’s very clear that the international economy itself faces today structural challenges: challenges of overdependence on sources of production, challenges of access to some markets, challenges of connectivity—we are seeing it very sharply today in the Gulf—challenges of logistics, sometimes of technology,” the EAM said.

“So, what we do to stabilise, de-risk and diversify, I think is today really the central issue in world diplomacy and certainly one that should engage us,” he said.

“The second aspect, of course, is what is you know… the levels of conflicts and tensions which are happening around the world and it’s very clear that in a globalised world you know they cannot be contained regionally anymore. If one looks at 25 years ago, you could have had a problem in one part of the world with others relatively insulated… That is not the case now, whether you look at what is happening in Ukraine, what is happening in the Gulf, to some degree, what’s happening in Africa, tensions rise in the Indo-Pacific—every part of it really spreads; it has a sort of cascading impact and often actually turns up in ways which are not readily anticipated,” the EAM said.