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.
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:
- supporting the enhanced utilization of digital technology
- supporting trade and investment diversification.
- 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.