EDEN IAS

NEWS IMPULSE | SUPPLY CHAIN RESILIENCE INITIATIVE| 28 APRIL

Syllabus Section: Economy

Why in News?

The Trade Ministers of India,Japan and Australia formally launched the Supply Chain Resilience initiative in a Trilateral Ministerial Meeting held virtually on 27.04.2021.

About:

Aim:The SCRI aims to create a virtuous cycle of enhancing supply chain resilience with a view to eventually attaining strong, sustainable, balanced and inclusive growth in the region.

Reason Behind this Initiative:

  • 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.
  • Supply chains have been left vulnerable due to a range of factors.
  • The Ministers noted the importance of risk management and continuity plans in order to avoid supply chain disruptions
  • The ministers affirmed their commitment to strengthen resilient supply chains, by:
  1. supporting the enhanced utilization of digital technology
  2. supporting trade and investment diversification.

Directions Given:

  • The Ministers instructed their officials to implement the following as initial projects of SCRI and further develop the Initiative:
  • sharing of 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.
  • The Ministers decided to convene at least once a year to provide guidance to the implementation of the SCRI as well as to consult on how to develop the Initiative.
  • The Ministers noted the important role of business and academia for the Initiative.

Source: PIB

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