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What do you understand by Supply chain resilience? Discuss in detail the newly mooted Supply Chain Resilience Initiative (SCRI) of Japan and its impact on India.

Topic : GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora

GS-3: supply chain management.

5. What do you understand by Supply chain resilience? Discuss in detail the newly mooted Supply Chain Resilience Initiative (SCRI) of Japan and its impact on India. (250 words )

Reference: The HIndu 

Why the question:

In the light of the COVID-19 pandemic and the subsequent lockdowns and trade tensions between China and the United States having caused bottlenecks in the global supply chains, Japan has mooted the Supply Chain Resilience Initiative (SCRI). Thus the question.

Key Demand of the question:

Explain in detail what you understand by SCR and what the effects of SCRI of Japan on India are.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Define what you understand by SCR – Supply chain resilience is an approach wherein a country instead of being dependent on just one or a few nations has diversified its supply risk across a range of supplying nations.

Body:

Briefly present the background in which the initiative has been mooted by Japan.

The Supply Chain Resilience Initiative (SCRI) is proposed as a trilateral approach to trade, with India and Australia. It could also potentially involve other Asian and Pacific Rim nations in the later years.

Then move onto discuss the need for SCR.

Present the case of India’s inclusion; the long-standing and deepening trade relationship between India and Japan seems to have spurred Japan to include India as a partner for the SCRI. Japan is the fourth-largest investor in India with cumulative foreign direct investments accounting for 7.2% of inflows in the period between 2000-2020. There has been impressive growth in the bilateral trade between India and Japan.

Conclusion:

Conclude with way forward.