Supply Chain Resilience initiative


  • Recently, the Trade Ministers of India, Japan and Australia formally launched the Supply Chain Resilience initiative in a Trilateral Ministerial Meeting.

About Supply Chain Resilience initiative

  • It was proposed by Japan.
  • It mainly aims to reduce the dependence on China.
  • The SCRI, first proposed by Japan, aims to reduce dependence on China amid a likelihood of rechurning of supply chains in the Indo-Pacific region amid the Covid-19 pandemic. Supply Chain Resilience Initiative
  • Initially, SCRI will focus on sharing best practices on supply chain resilience and holding investment promotion events and buyer-seller matching events to provide opportunities for stakeholders to explore the possibility of diversification of their supply chains.
  • Joint measures may include supporting the enhanced utilisation of digital technology and trade and investment diversification.
  • Expansion of the SCRI may be considered based on consensus, if needed, in due course. The ministers have decided to convene at least once a year to provide guidance to the implementation and development of the SCRI.

Objectives of Supply Chain Resilience Initiative

  • To increase Foreign Direct Investment and eventually turn Indo-Pacific region into an “Economic Powerhouse”.
  • To build complementary relations between the partner countries
  • To build on the existential Supply Chain Network.


  • According to the Confederation of Indian Industry (CII), the share of Chinese imports into India stood at 14.5%. The Chinese imports dominate electronics, pharmaceuticals, automotive parts, chemicals, shipping and textiles.
  • In Electronics alone China accounts to 45% of imports of India. During COVID-19, all these sectors were highly affected as India was heavily dependent on China for its raw materials especially in the field of Electronics and Pharmaceuticals.
  • The COVID-19 has revealed supply chain vulnerabilities and the monopolism enjoyed by China in the region.

Chinese moves

  • China recently formed an initiative with its Asian neighbours Nepal, Pakistan, Afghanistan, Sri Lanka and Bangladesh to help them set up COVID-19 emergency supply reserves.
  • Also, the Sichuan Airlines of China recently suspended cargo flights to India that were taking crucial supplies of Oxygen concentrators to India.
  • Such belligerence (aggressive war like behaviour) of China even during COVID-19 pandemic has forced the countries to form the initiative.

Way Forward

  • It will help boost India’s manufacturing competitiveness and increase its share in world trade. In this pursuit, there is a need to create an infrastructure that raises the competitiveness of India’s exports.
  • While India appears an attractive option for potential investors both as a market and as a manufacturing base, it needs to accelerate progress in ease of doing business and in skill building.

Source: PIB

For International Relations Current Affairs: Click Here

IAS Abhiyan’s Most Popular Courses

IAS Abhiyan is now on Telegram:

Leave a Reply