S Jaishankar at a felicitation ceremony at IIM Calcutta

KOLKATA: External affairs minister (EAM) S Jaishankar said on Saturday that the world was looking beyond the US and China to other countries and blocs for trade and energy as they try to hedge against contingencies.Calling the US the “long-time underwriter of the contemporary system”, Jaishankar said, “The US has set radically new terms of engagement. It is doing so by dealing with countries on a one-on-one basis. China has long played by its own rules and is now doing so even more.”Jaishankar was speaking at an event at Indian Institute of Management (IIM), Calcutta where he received a Doctorate of Philosophies Honoris Causa — an honorary doctorate.Pointing to the fast-changing nature of current geopolitics, he said, “This is an era where politics increasingly trumps economics, and that is not a pun.” He said the “pulls and pressures of globalisation, fragmentation and supply insecurities” have prompted the rest of the world to respond by “hedging against all contingencies”. Jaishankar said countries were exploring options other than the US and China “with great urgency”, and a sign of which was the uptick in enthusiasm around free trade agreements across geographies.Speaking on de-risking and hedging against uncertainties, Jaishankar called for more production centres and resilient supply lines. “The decisions are not merely made on costs, but taking into account ownership and security — (on) where a product is made and who offers a service is as important as the price point.”On energy, he said the US transformed from an importer of fossil fuels into a “significant exporter” while China dominates renewables. “Where trade is concerned, supply-side risks are aggravated by demand-side uncertainties,” he said.The remarks come at a time when more than 85% of India’s crude oil demand is met by imports from countries, including Russia, Saudi Arabia, Iraq and the US. After war broke out between Russia and Ukraine, India’s reliance on oil imports rose sharply due to discounted crude from the country.Jaishankar said India was actively pursuing self-reliance and making itself a manufacturing base for industries, with a focus on “reducing our vulnerabilities” and “promoting our influence” in the global market. “As India rises and our economy grows, we are preparing to shoulder more responsibilities… India has been making exponential advancements in infrastructure as well as in the latest scientific developments,” he said.