Recently, India elected as Vice-Chair of IPEF’s Supply Chain Council, enhancing regional cooperation for supply chain resilience
In line with the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement, India and 13 other IPEF partners have established three supply chain bodies. These include:
Bodies:
- Supply Chain Council: Focuses on targeted, action-oriented efforts to strengthen supply chains for sectors and goods critical to national security, public health, and more.
- Crisis Response Network: Provides a forum for collective emergency responses to urgent or imminent disruptions.
- Labor Rights Advisory Board: Brings together workers, employers, and governments to strengthen labour rights and workforce development across regional supply chains.
Enroll now for UPSC Online Course
Supply Chain Resilience (SCR)
- About: SCR is the ability of a supply chain network to endure disruptions and minimise their impact on revenues, costs, and customers.
- The interconnected journey of raw materials or products from assembly to final sale.
Threats to SCR:
- Geo-political: e.g., energy supply disruptions due to conflicts like Russia-Ukraine.
- Economic: e.g., demand and supply shocks induced by COVID-19.
Measures Taken by India for SCR:
- Global Initiatives: Supply Chain Resilience Initiative (with Australia and Japan), Quad Supply Chain Initiative.
- Domestic Initiatives: PM Gati Shakti National Master Plan, National Logistics Policy, PLI Scheme for various sectors.
Current Appointments
- Supply Chain Council: USA (Chair) and India (Vice Chair)
- Crisis Response Network: Republic of Korea (Chair) and Japan (Vice Chair)
- Labor Rights Advisory Board: USA (Chair) and Fiji (Vice Chair)
Check Out UPSC NCERT Textbooks From PW Store
Indo-Pacific Economic Framework (IPEF)
- About: The Indo-Pacific Economic Framework (IPEF) was launched in May 2022 in Tokyo, Japan, comprising 14 countries. It aims to enhance economic engagement and cooperation among partner countries to foster growth, economic stability, and regional prosperity.
- Members (14): Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and USA.
IPEF Pillars:
- Fair and Resilient Trade: Promotes regional economic growth, peace, and prosperity.
- Supply Chain Resilience: Strengthens and integrates supply chains.
- Clean Economy: Focuses on renewable energy and reducing carbon emissions.
- Fair Economy: Implements effective anti-corruption and tax policies.
- India participates in Pillars II to IV and holds observer status in Pillar I.
India’s Position
- About: India has not taken a definitive position on joining the negotiations due to concerns about the benefits for member countries and potential discriminatory conditionalities, particularly regarding environmental issues.
- IPEF Concerns: Some proposed areas in the IPEF do not align with India’s interests. For instance, the digital governance aspects of the IPEF conflict with India’s current position.
- Digital Framework Development: India is developing its own digital framework and laws, focusing on privacy and data protection, and is awaiting further details before committing.
- Withdrawal of Data Protection Bill: In August 2022, India withdrew the Personal Data Protection Bill from Parliament, opting to consider a “comprehensive legal framework” for regulating the Internet ecosystem and cybersecurity.
- US Concerns on Data Localisation: The US has previously expressed concerns about India potentially requiring data localization, which would mandate that data of Indian users, including data from US-based companies, be stored and processed within India.
|
Enroll now for UPSC Online Classes
August 2, 2024
