Supply Chain Council formed under Supply Chain Resilience Agreement
USA will be the Chair and India Vice Chair
India
has signed the Supply Chain Resilience Agreement (Pillar-II) in November 2023
under the Indo-Pacific Economic Framework for Prosperity (IPEF), a 14 member
plurilateral grouping in the region. The Agreement seeks to strengthen supply
chain crucial for national security and economic stability. The Agreement came
into force on February 24, 2024. Under the Agreement, a Supply Chain
Council (SCC) has been set up with the US as Chair and India as Vice-Chair.
IPEF partners represent approximately 40 percent
of the global GDP, and 28 percent of global goods and services trade, making it
crucial for international trade dynamics. The Agreement seeks to strengthen
economic, commercial, and trade relationships among enterprises in the
economies of the Parties and improve supply chain resilience in critical
sectors. Article 6.10 of the Agreement also encourages private sector
engagement to improve the resilience, efficiency, productivity, sustainability
inclusivity etc. of IPEF supply chains.
Article 10 of the Agreement provides for
identification of critical sectors or key goods by the IPEF partners towards
ensuring national security, public health and safety, or prevention of
significant or widespread economic disruptions. India is closely working with
stakeholders such as industry, academia, experts, etc. for identification of
critical sectors or key goods for collaboration with IPEF partners for India’s
supply chain resiliency. In September 2024, the first SCC meeting in Washington
led to the formation of Action Plan Teams focusing on key areas such as
Semiconductors, Critical Minerals, and Chemicals. In the meeting, India has
expressed its willingness to lead a proposed action plan team on the
healthcare/pharma sector. Two Sub-Committees focusing on Logistics and Movement
of Goods, and Data and Analytics have also been formed. India participated in
the first meeting of Crisis Response Network held in Washington DC in September
2024, which included a tabletop exercise aimed at shortening response time in
actual crisis situations by simulating scenarios where supply chain disruptions
are highly likely.
Further, two Memorandum of Understanding (MoUs)
have also been signed by Department of Commerce with the USA in last two years:
one in the sector of semiconductors and other in the sector of critical
minerals both of which are a strong step towards securing India’s Supply Chain
resilience in these sectors.
This information has been provided by the Union Minister
of State for Commerce and Industry, Jitin Prasada in a written reply in the Lok
Sabha today.