US-China Strategic Competition: India\'s Imperative to De-Risk and Diversify

Key Highlights & Summary

 • External Affairs Minister S. Jaishankar stated that the US and China are in a systemic \'competitive mode\', compelling nations like India to \'de-risk\' and \'diversify\' to protect national interests. 

 • Speaking at the Asia Society Policy Institute in New York, the Minister highlighted that global supply chain disruptions necessitate economic hedging in a fragmented international order.  

• On Indo-US bilateral ties, Jaishankar cautioned that if Washington does not appreciate New Delhi\'s security concerns regarding Pakistan-sponsored terrorism, it could impact strategic partnership dynamics. 

 • Global governance consensus remains elusive as major powers fail to agree on global issues, prompting middle powers to build resilient supply networks.  

• India\'s foreign policy continues to emphasize Strategic Autonomy, maintaining balanced engagements across multiple geopolitical groupings while prioritizing national security.  

• Economic diversification strategies, such as critical technology corridors and local supply resilience, are vital to insulating emerging economies from great-power friction. 

 Essential Definitions  

• De-risking: A geo-economic strategy aimed at reducing over-reliance on a single nation for critical trade and supply chains without completely decoupling economic ties.  

• Strategic Autonomy: The capacity of a nation to pursue its sovereign national interests and foreign policy decisions independently without being constrained by allied power blocs. 

 • Supply Chain Resilience: The structural ability of an economic system to withstand, absorb, and rapidly recover from global disruptions or geopolitical shocks. 

 Legal and Constitutional Framework 

• Article 51 of the Indian Constitution (Directive Principles of State Policy): Mandates the State to promote international peace, security, just and honorable relations between nations, and respect for international law. 

• Article 73 of the Indian Constitution: Vests executive power in the Union to navigate foreign affairs, negotiate international agreements, and safeguard sovereign national security interests.  

• Foreign Trade (Development and Regulation) Act, 1992: Provides the statutory basis for formulating national trade policies, regulating imports/exports, and executing supply chain diversification directives. 

 Conclusion As intensifying power rivalry between the US and China fragments the multilateral order, India\'s pragmatic emphasis on de-risking and supply chain diversification safeguards its strategic leverage. Balancing bilateral alliances with clear red lines on cross-border security ensures that New Delhi maintains independence while fostering resilient trade partnerships.  

UPSC Relevance

 • GS Paper II (International Relations): Bilateral, regional, and global groupings involving India, effect of policies and politics of developed countries on India\'s interests, and Indian Diaspora/Foreign Policy dynamics. 

• GS Paper III (Economy & Security): Supply chain resilience, impact of global trade disruptions on national economy, and security challenges in border regions.