Indian businesses should take a "balanced" approach in dealing with China as excessive dependence on its supply chain could be detrimental to India's national interest, External Affairs Minister S Jaishankar said on Thursday.
He said there had been "some progress" from the recent resolution of the issues in the remaining friction points along the LAC in eastern Ladakh. But there is a need for further discussions, he said, speaking at an industry chamber Assocham.
To a question on evolving relations with China, he said with that country accounting for 32-33 per cent of global manufacturing, it is logical that several supply chains will have to go through China.
"It is a reality which we will have to factor (that) into our calculations."
"But it is also a fact that if you become excessively dependent on a single supply chain or in the name of supply chain, you open up your market that it is no longer a supply chain, but your sectors are getting hollowed out. You have to be careful," he said.
"Nobody is saying don't do business (with China). But we are equally saying, think about it, weigh it, and look at the bigger-term implications, especially for micro, small and medium enterprises (MSMEs)," he said.
Jaishankar said India doesn't want to "end up as a market for another economy and not be able to compete with their products, which are dumped in our country".
The external affairs minister also briefly referred to the almost four-and-half-year-long border standoff between the two countries along the LAC in eastern Ladakh that ended last month.
"We have managed to make some progress out there. We have to now sit down and discuss with the Chinese what we do further.You know, there are no black and white answers in very sharp terms. I think everything needs to be balanced," he said.
In view of the situation in West Asia, when a question on disruption in the shipping lanes in the Red Sea was raised, Jaishankar said it is impacting trade.
"I think it is a big concern for us. We have tried to do our share. We actually deployed some Navy ships as well," he said.
The external affairs minister said alternative routes for supplies are increasing the transportation cost of the shipments.
"It is of very direct economic consequence. So we have actually been talking to all the major players, including Iran and Israel," he said.
"We want restraint. We want a cooling down. We want a ceasefire and we want negotiations so that actually our economic interests are not threatened," he said.
Asked whether India's ties with Russia are "lopsided", Jaishankar said New Delhi has told Moscow that the Russian economy must open up much more to Indian exports.
He said India has also asked for better access to the Russian economy.
"We are pushing them in the pharma industry, marine products, and some agro-products. There are SPS restrictions, non-tariff barriers, and standards (that) make you do things even if you have certification somewhere else," he said.
"These are standard tactics which everybody employs to keep the other guy out. Now we have to find ways of going through it and persuading them, cajoling them. I think we will make progress," he said.
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