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Geo-politics and geo-economics can never be truly separated. For India to be truly Atmanirbhar, India needs to focus on creating and fostering an environment of resilient supply chains that will enhance India’s position in the global supply chain. Comment.

Topic:    Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

5. Geo-politics and geo-economics can never be truly separated. For India to be truly Atmanirbhar, India needs to focus on creating and fostering an environment of resilient supply chains that will enhance India’s position in the global supply chain. Comment. (250 words)

Reference: The Hindu 

Why the question:

A key lesson learnt by the world during the COVID-19 pandemic has been the importance of creating resilient supply chains that can withstand disruptions and ensure reliability for the global economy. This article emphasizes on it.

Key Demand of the question:

To develop a link between geo-politics and geo-economics and stress on the need to have resilient and self-reliant supply chains.

Directive:

Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction:

Mention about the bottlenecks in supply chains which can either be natural due to disasters or manmade due to politics, breakdown etc.

Body:

Bring out the link between geopolitics and geo-economics. Substantiate with historical as well as recent examples as to how supply chains were disrupted because of geo-politics and bring out its impact.

Write about how having a resilient supply chains is vital to ensure the success of Atmanirbhar Bharat. Mention the obstacles that India faces such as, over reliance on imports in some sectors,  issues regarding data localisation, intellectual property rights, high tariffs, duplicative safety and security testing, price controls, being overly bureaucratic etc.

Suggest measures to strengthen India’s capacities to participate more vigorously without being prey to supply chain disruptions: engaging the Supply Chain Resilience Initiative (SCRI) of India, Japan and Australia, Supply chain needs to be diversified, infrastructure needs to be resilient and reliable and policies in the business environment also need to be reliable, levelling the playing field by abandoning discriminatory policies, enhancing transparency and predictability and its policies and lowering the cost of doing business and utilizing technologies such as blockchain etc.

Conclusion:

Conclude with a way forward.

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