EAM Jaishankar: Would you Do Business With Somebody Who Had Just Barged Into Your Drawing Room?

External Affairs Minister S Jaishankar stressed that India has a “very low tolerance for any form of cross-border terrorism.” Describing the situation with China as “more complex,” Jaishankar listed three factors impacting the relationship.

“Would you do business with somebody who had just barged into your drawing room and is trying to make a mess of your house? There is a common sense proposition here,” said Jaishankar.

The second issue highlighted by the EAM is the “trade imbalance issue.” He said, “We have a problem with the business community of India which is that businesses still are making choices based really on price point. I understand the compulsion of business but in the long run, we will have to see how we encourage businesses to do much more domestic sourcing and for that, we need to see much more domestic production.”

The third issue, according to Jaishankar, is that many countries today have a national security filter. This filter does not mean that nothing comes in, but rather that certain national security sensitivities must be evaluated in a business proposition. “Where China is concerned, we will still encourage people in this country to manufacture in India, source in India, procure from India, wherever possible, try to think long term…but we have not completely prohibited working with China,” he said.

Jaishankar further added that in 2014, India made a firm decision not to tolerate any cross-border terrorism. He said, “I think the people of this nation made a very clear decision in 2014 that they are not going to accept it. In this country, I think the tolerance for any kind of cross-border terrorism activity is very low. There will be consequences, both across the LoC and across the IB, if something like this happens. That is the message of Uri and Balakot.”

“The ball is in their court. If they wind down this industry that they have built up in many decades, then people will treat them like a normal neighbour. If they make this their core competence, then obviously that will define their image,” he said.

“So we have been very straight, that they have to make up their mind and part of the problem is also, after 2019, when Imran Khan’s government took several steps that downgrade the relationship, we didn’t do it, they did it,” he said.

Jaishankar was speaking at the CII Annual Business Summit 2024.