New Delhi: In the backdrop of the ongoing military conflict between India and Pakistan, a senior official in the Ministry of External Affairs (MEA) Friday said “we should remain hopeful” that the existing situation does not escalate.
Dammu Ravi, Secretary (Economic Relations) in the MEA, was responding to a query on the impact of any conflict on the economy and the resilience required in such matters.
Interacting with audience at an event hosted by Public Affairs Forum of India (PAFI), Ravi said, “Security, development and economic growth are highly inter-linked concepts around the world. In a conflict situation, the industry will naturally recoil. It will take time for the situation to improve,” Ravi said.
“We should remain hopeful that the existing conflict does not escalate,” he said.
“Till things subside, the industry will do what it thinks is right, which would normally be not wanting to take risks,” the MEA official said.
India Thursday night neutralised Pakistan’s attempts to hit 36 military stations in Jammu, Pathankot, Udhampur and several other locations with missiles and drones as tensions soared between the two countries.
Sounds of explosions were reported in Akhnoor, Samba, Baramulla, Kupwara and several other places as the Indian military effectively countered the attacks on the western border.
The defence ministry has maintained that the country remains “fully prepared to defend its sovereignty and ensure the safety of its people”.
At Friday’s event, Ravi was also quizzed about the US raising import tariffs and its impact on the global economy.
“What the US is doing is disrupting the current trends, the flow of trade… it is harming both the US and the world. You are shooting yourself on the foot by raising tariffs,” he said.
He further said that the US is a large economy and lot of markets around the world will face problems due to the tariff issue.
Earlier, in his address, Ravi said a “tectonic shift” from ‘trans-Atlantic’ to ‘trans-Pacific’ was accelerated in the 21st century.
“This is going to determine how the world will move in the 21st century. In the 21st century, we have to recognise that two countries are going to play a major role — India and China,” Ravi said.
“We always thought that post World War 2, security and military dimensions are going to be important. They are still important, but it is being overtaken by economic interests of the nations. This is why most of the foreign policies are underpinned by economic interests of nations,” he said.
Ravi underlined that growth in some countries have accelerated while some countries have been left behind, and reactions to this is being seen in terms of nationalism.
“The ‘nationalist’ tendency we see today is increasing ‘protectionism’. Countries want to protect their industry against those who have taken advantage of it, those who have perhaps gamed their multilateral rule book to their advantage,” he said.
The MEA official emphasised that with supply chains concentrated in few hands, it is going to be increasingly difficult for those countries that are on the rise.
Technology is bringing about competitiveness and “Artificial Intelligence is going to be a key player in determining the competitiveness of nations,” Ravi said.
He underlined that it took India about 65 years to achieve the first USD 1 trillion in Gross Domestic Product and “we are going to achieve USD 5 trillion in probably two to two-and-a-half years. That is predictable, achievable and doable, provided that we see consistent growth,” he said.
Ravi also spoke of the government’s Atmanirbhar Bharat vision.
“The dynamics of Atmanirbhar Bharat will be enhanced, and derive more benefits, if we have external linkages. That is why we are looking at Indian-owned Special Economic Zones in our neighbourhood and extended neighbourhood, in Africa,” he said.
Ravi also said technologies of the 21st century will “invariably depend on critical minerals and rare earths”.
PTI
