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Supply Chain Resilience Initiative (SCRI)

Topics Covered: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Supply Chain Resilience Initiative (SCRI):


Context:

In a move to counter China’s dominance of supply chain in the Indo-Pacific region, trade ministers of India, Japan and Australia have formally launched the Supply Chain Resilience Initiative (SCRI).

What is it?

  • 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.
  • 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.

Possible policy measures under the initiative may include:

(i) supporting the enhanced utilization of digital technology.

(ii) supporting trade and investment diversification.

Significance:

  • The SCRI aims to reduce dependence on China amid a likelihood of rechurning of supply chains in the Indo-Pacific region amid the Covid-19 pandemic.
  • It seeks to build upon the existing bilateral frameworks like the Asean-Japan Economic Resilience Action Plan and India-Japan Industrial Competitiveness Partnership and attract foreign direct investment in the region.

InstaLinks:

Prelims Link:

  1. About the initiative.
  2. Participants.
  3. Objectives.

Mains Link:

Discuss the significance of the initiative.

Sources: PIB.