Single supply chain perilous to domestic businesses: Jaishankar

While noting the need to engage with China, a strong element in the global supply chain today, External Affairs Minister S Jaishankar cautioned on finding the "right balance" or else the dumping of foreign goods might lead to domestic sectors getting "hallowed out."

Noting that China accounts for 32-33 per cent of global manufacturing, the EAM stressed that there should not be "excessive dependency" on a single supply chain.

The Foreign Minister was speaking at the 'Bharat @100' event, organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Thursday. He was asked about the connection with China because of Beijing's strong presence behind almost every supply chain.

When posed with the statement, "If you want to be a supply chain you have to have a connection with China because they are the supply chain behind the supply chain, behind literally everything”, the EAM said that there are two important observations to be made.