Why Supply Chain Resilience Initiative in news?

On April 27, 2021, India, Australia and Japan formally launched the Supply Chain Resilience Initiative.

The initiative was launched to counter the dominance of China in the Global Supply Chain. It aims to prevent disruptions in the supply chain as seen during COVID-19 pandemic.

What is Supply Chain Resilience Initiative-

In the context of international trade, supply chain resilience is an approach that helps a country to ensure that it has diversified its supply risk across a clutch of supplying nations instead of being dependent on just one or a few.

What is the need of Supply Chain Resilience Initiative?

The Covid-19 pandemic was having an unprecedented impact in terms of lives lost, livelihoods and economies affected, and that the pandemic had revealed supply chain vulnerabilities globally and in the region.

What are the Objectives of Supply Chain Resilience Initiative?
To build a mutually complementary relationship among partner countries.

To attract foreign direct investment to turn the Indo-Pacific into an “economic powerhouse”.

Significance of SCRI to India-

 -India enhances self-reliance the SCRI initiave could build resilience into the economy’s supply networks.

-Following the border tensions with China, partners such as Japan have sensed that India may be ready for dialogue on alternative supply chains.

-The dependency on China will be reduced.