The Union Minister of Commerce and Industry bats for local supply chains at Davos meet of World Economic Forum (WEF)

GS Paper 2:

 Syllabus: International organizations(WEF), local industries

Context:

• Indian industry should strengthen domestic supply chains by sourcing supplies locally.
• We should not excessively depend on international supply chains and ask businesses to procure goods locally “whenever there’s an opportunity”.

World Economic Forum(WEF)

• It is a Swiss nonprofit foundation established in 1971, based in Geneva, Switzerland.
• It is an international institution for public-private cooperation.
• It is Committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.
• Major reports published by WEF are:
  Energy Transition Index.
  Global Competitiveness Report.
  Global IT Report
  WEF along with INSEAD, and Cornell University publishes this report.
  Global Gender Gap Report.
  Global Risk Report.
  Global Travel and Tourism Report.

Local supply chain:

• The local supply chain implies having regional suppliers and manufacturers in an area very close to your main location.
• During the coronavirus, small businesses were hit hard with the economic impact and being cut off from their foreign suppliers.
• Here is a list of government schemes launched to develop and encourage entrepreneurship in India.Initiatives by government to promote local business:
• AtmaNirbhar Bharat
• SAMRIDH Scheme
• Startup India Seed Fund
• Startup India Initiative
• Startup Leadership Program
• ASPIRE
• Pradhan Mantri Mudra Yojana (PMMY)
• Qualcomm Semiconductor Mentorship Program (QSMP)
• Ministry of Skill Development and Entrepreneurship
• ATAL Innovation Mission
• eBiz Portal
• Stand Up India Scheme

AtmaNirbhar Bharat

• Atmanirbhar Bharat Abhiyan (Self-reliant India Mission) is a campaign launched by the Central Government of India which included an Rs.20 lakh crore economic stimulus package and a number of reform proposals.
• Atmanirbhar Bharat Abhiyan rests on 5 important pillars.

1. Economy: contemplates not an Incremental change but a quantum leap so that we can convert the current adversity into an advantage.
2. Infrastructure: that can be an image of modern India or it can be the identity of India.
3. Systems: driven by 21st-century technology, and that is not based on old rules.
4. Democracy: a vibrant democracy that is the source of energy to make India self-reliant.
5. Demand: where the strength of our demand and supply chain is utilized intelligently.

InstaLinks:

 Prelims Link:

• WEF
• Reports by WEF
• Schemes to promote local businesses
• MSMEs

 Mains link:

Indian industry should strengthen domestic supply chains rather than relying on external sources. Critically analyze.