INDIA WORKING ON SUPPLY CHAIN WITH JAPAN, AUSTRALIA TO REDUCE DEPENDENCY ON CHINA
India, Japan and Australia are working on a supply chain agreement to counter dependence on China by creating an alternative.
The three countries plan to launch a trilateral Supply Chain Resilience Initiative (SCRI), which was first proposed by Tokyo, according to a report by The Economic Times.
The ministers of commerce and trade of the three countries may discuss the initiative for the first time at a meeting next week, the report added.
Japan’s Ministry of Economy, Trade and Industry approached India and highlighted the urgent need to work on the initiative, said the report.
Tokyo has said it was in favour of launching the SCRI by November, the report said. ASEAN (Association of Southeast Asian Nations) may later be invited to join the global supply chain.
India has taken the supply chain proposal seriously and has taken the decision at the highest levels of the government, the report said.
India-China ties have been strained amid border tensions along the Line of Actual Control (LAC). In June, there was a clash between Indian and Chinese soldiers at Galwan Valley in Ladakh.
This time, the government appears to have taken the call at the highest levels to become part of the global supply chain, thus emerging as an alternative to China.
India has also introduced sops to attract global investors in an effort to compete with China and offer an alternative.
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