Key Points

Addressing the 4th Kautilya Economic Conclave in the national capital, Jaishankar highlighted that the world is going through "turbulent times," with evolving dynamics not only in economics but also in the way conflicts are fought and perceived.

"Today, the nature of weaponry, the nature of war has fundamentally changed," he said noting the dawn of new era of "contactless wars" shaped by advanced weaponry and technology.

Referring to recent international conflicts, he added, "We have seen that in multiple conflicts, starting with Azerbaijan-Armenia, Ukraine-Russia and Israel-Iran; so, contactless war, often with standoff weapons, but which can have a very impactful, sometimes even a decisive outcome."

Jaishankar further noted that these developments reflect deeper shifts in global sentiment. "These are today the characteristics of the landscape of these turbulent times. The sentiment that characterises the turbulent times is a growth in the opposition to globalisation in many parts of the world," he said.

The Union Minister further said, "in terms of resources today, the competition for rare earths and critical minerals has become a very major factor in competition between nations."

He noted that the "intensity of these multiple happenings actually converging on the global economy at the same time."

"This is today actually setting into motion a paradoxical situation where on the one hand, the very factors which I referred to encourage higher risk-taking. At the same time, because of the consequence of this, there is a serious effort also to de-risk every facet of both politics and economics," he said.

Jaishankar said that the world has seen "a weakening, sometimes even discarding of international regimes and rules."

"We have seen economically that cost may not any longer be the definitive criteria, that ownership or security or reliability, resilience is equally important. We have seen politically that alliances and understandings are being revisited. We've also seen in a few cases, in the cases of really the major polities, that their belief in balance of power is probably much less."

"They seem to think they may not need the rest of the world as much as they did before. So if they have margins of power, they're prepared to exercise those margins in pursuit of their policies and actions. We have therefore seen overall the global needle move much more towards competition and away from compacts."

"And that global needle is moving because there is today a tendency to weaponise almost everything. And that if a state has a tool in its toolkit, an instrument to be used, there is much less reticence, particularly on the part of the major powers, to use that. So all in all, yes, times are turbulent, to say the least," the minister said.

Jaishankar emphasised that New Delhi's strength lies in internal capability-building.

"For India, in many ways, the answer for a more difficult world is not just outside. A large part of that answer is inside. That if we can get our human resources better developed, if we can get our infrastructure moving faster, if we can get manufacturing to deepen more, if we can get new trade flows, because I think, given the volatility, the uncertainty that we have seen this year, it is very clear that there is a very strong case really to diversify further the trade account as well. If we can address energy security, food security, health security, again, partly through a mixture of national capabilities, by diversifying sources and spreading the risks."

On Friday, Finance Minister Nirmala Sitharaman highlighted India's role as a stabilising force in the global economy while cautioning against the risks of imbalances and volatility, in her inaugural address at the fourth edition of the 'Kautilya Economic Conclave 2025.'

Speaking at the conclave, themed "Seeking prosperity in turbulent times", the minister noted that the very foundations of the global order are undergoing a structural transformation, with trade flows, alliances and financial systems being reshaped by geopolitical shifts.

Stating that the present is 'turbulent', in some sense, would be to understate the scale of the challenge at hand, the minister said, adding that omnipresent uncertainty has become the new norm.

"The international order is morphing. Trade flows are being reshaped, alliances are being tested, investments are being rerouted along geopolitical lines, and shared commitments are being re-examined," Sitharaman noted

Reflecting on the contours of multi-polarity, the minister said the global dominance of one power has given way to contestation, with Asian nations asserting alternative models of growth and governance.

"What we face is not a temporary disruption but a structural transformation. The question is: What lies on the other side of this transformation? What will the new equilibrium look like? Who will shape it, and on what terms?" the minister said.

- ANI