Indian firms have to assess business dealings with China through a “national security filter” and do more sourcing from domestic manufacturers amid the standoff on the Line of Actual Control (LAC), external affairs minister S Jaishankar said on Friday.

Jaishankar, who was speaking at the annual business summit of the Confederation of Indian Industry (CII), said the Russia-Ukraine conflict, escalation of violence in West Asia, disruption of logistics due to war and sanctions, and a crisis of fuel, food and fertilisers have all combined to create a “perfect storm” for the world economy.

While Jaishankar didn’t refer to China in his speech, he addressed India’s concerns about its northern neighbour during a question-and-answer session, including the need to address natural security sensitivities in business dealings.

“Where China is concerned, we will still encourage people in this country – manufacture in India, source in India, procure from India,” Jaishankar said in response to a question on trade with China.