Supply Chain Resilience Initiative of different countries
Recently, India, Australia and Japan have formally launched a supply chain resilience initiative due to COVID-19.
Its main objective is to reduce the importance of China in the global supply chain. Simultaneously the supply chain disruptions during the COVID-19 pandemic have to be prevented. This initiative will mainly focus on diversification of investments and adoption of digital technology.
Objectives of Supply Chain Resilience Initiative
- Increase in foreign direct investment and turn Indo-Pacific region into “economic powerhouse”.
- To promote complementary relations between partner countries.
- Building a real supply chain network.
Supply Chain Resilience Initiative
It was first proposed by Japan. Its main objective is to reduce dependence on China.
Benefit to India
- According to the Confederation of Indian Industry (CII), the share of Chineseimports in India is 5%. These imports are mainly electronics, pharmaceuticals, automotive parts, chemicals, shipping and textiles.
- India’s imports from China comprise only 45% of electronics. Currently during COVID-19, all these sectors have been highly affected as India relied heavily on China for its raw materials, especially in the field of electronics and pharmaceuticals. Now this initiative of India, Australia and Japan will reduce this dependency.
Source – The Hindu