External Affairs Minister (EAM) S Jaishankar has raised concerns over the increasing use of trade as a geopolitical tool, emphasising the need for India to engage with reliable and transparent partners. Speaking at the Raisina Dialogue 2025, India’s premier geopolitical conference, Jaishankar highlighted the growing trend of weaponising trade through tariffs, sanctions, and export controls, forcing nations to reassess their economic relationships.

Rising Concerns Over Weaponisation of Trade

Addressing a session titled 'Commissars and Capitalists: Politics, Business, and the New World Order', Jaishankar remarked that while trade restrictions have always existed, the past decade has seen an accelerated use of economic tools as leverage in global politics. Without directly mentioning US President Donald Trump’s recent threats of imposing reciprocal tariffs from April 2, he stressed the importance of adapting to these economic realities.

“Tariffs, sanctions, export controls—whether we like it or not, they are a reality. Countries use them. If one looks at the last decade, we have seen a much greater weaponisation of pretty much any kind of economic activity,” he stated.

Jaishankar underlined that businesses today must factor in national security considerations, particularly in the digital age. “In the digital era, it’s not just about cost, it is about comfort and trust. If you are today looking at a strategic level, the business conversations you keep hearing [are about] resilience, reliability, trust, transparency. You want to do business more and more with those with whom you are secure,” he explained.

Navigating the Global Trade Landscape

India is actively engaged in trade negotiations with key partners, including the United States, the United Kingdom, and the European Union. These regions serve as major growth markets and technological collaborators for India, as well as hubs for Indian students and tourists. The ongoing negotiations with the US aim to finalise an initial bilateral trade agreement by the fall.

Given the shifting global trade environment, Jaishankar emphasised the importance of selecting partners who align with India’s economic and security interests. He suggested that nations can counter trade weaponisation by either staying on the “right side of the weapon” to avoid repercussions or finding more dependable allies.

Regulating Big Data and AI in Trade

Jaishankar also stressed the necessity of implementing regulations to oversee big data and artificial intelligence (AI) in global trade. He noted that data ownership and processing are now critical factors influencing business and national security.

“It does matter where our data goes, who looks at our data, who processes it, who develops the AI based on our data. We can’t be agnostic in the digital era,” he asserted. He pointed out that India possesses vast amounts of data due to its large and diverse population, and the country must maximize this asset to its advantage.

Engaging with Global Powers

When asked about whether the Trump administration is attempting to create a new world order, Jaishankar deflected, stating, “If your question is what the US is doing, you should ask the Americans, not me. We should be doing many things, including engaging the Americans and engaging the Global South. Our effort is to maximise our options to increase our turnover, to improve our technology.”

Global Perspectives on Economic Strategies

Other panelists at the session provided insights into the evolving global economic landscape. Joel Kaplan, Meta’s Chief Global Affairs Officer, noted that the Trump administration has adopted a different stance towards social media platforms and American technology firms. He highlighted the administration’s focus on promoting American technology while opposing what it perceives as discriminatory regulations, particularly in the European Union.

Pierroberto Folgiero, CEO of Italian shipbuilding company Fincantieri, underscored the significance of revitalising Western shipbuilding capabilities. He pointed out that China and South Korea currently dominate global merchant vessel production and argued that it is time to rebalance the industry. “China has a long-term view of the importance of the maritime economy, starting from shipbuilding, moving to logistic business all the way to owning port infrastructure. Now, it’s time to rebalance all this,” he said. He added that India has the potential to play a crucial role due to its strong engineering, manufacturing, and labour force.

Marianne Demarchi, CEO for Europe, Middle East, and Africa at the SWIFT payment system, warned about the risks posed by the rise of digital payment platforms and central bank digital currencies that lack interoperability. She noted that such developments could hinder economic growth and create financial fragmentation.

Jaishankar’s remarks at the Raisina Dialogue highlighted the pressing need for India to diversify its trade relationships and enhance its resilience against economic coercion. As global trade becomes increasingly intertwined with national security, India must navigate these challenges by forging strategic alliances and regulating key digital sectors. The evolving geopolitical landscape demands a careful balance between economic efficiency and security, making trust and transparency paramount in international trade relations.