In a significant move to strengthen supply chain resilience, a Supply Chain Council (SCC) has been established under the Supply Chain Resilience Agreement, a key element of the Indo-Pacific Economic Framework for Prosperity (IPEF).
The Ministry of Commerce and Industry announced that the United States will chair the council, with India serving as Vice-Chair, reflecting the growing collaboration between these two major economies. The Agreement, signed in November 2023 and effective from February 24, 2024, aims to improve supply chain stability, particularly in critical sectors essential for national security, economic stability, and public health.
Comprising 14 member countries, the IPEF collectively accounts for approximately 40% of global GDP and 28% of global trade, highlighting its crucial role in global economic affairs.
The first SCC meeting, held in Washington in September 2024, set the foundation for Action Plan Teams that will focus on key areas such as semiconductors, critical minerals, and chemicals. India has expressed its intent to take a leadership role in addressing vulnerabilities in the healthcare and pharmaceutical sectors, further demonstrating its commitment to strengthening global supply chains.
In addition, two sub-committees have been formed under the SCC: one focusing on logistics and the movement of goods, and the other on data analytics, aimed at streamlining operations and improving decision-making.
India also participated in the inaugural Crisis Response Network meeting in September 2024, which included a tabletop exercise designed to prepare member nations for potential supply chain disruptions. The exercise is intended to enhance response times and coordination during economic and logistical crises.
Jitin Prasada, Union Minister of State for Commerce and Industry, informed the Lok Sabha that India has signed two Memoranda of Understanding (MoUs) with the United States in the past two years. These agreements focus on the semiconductor and critical mineral sectors, both of which are vital for ensuring supply chain resilience in emerging industries.
Article 6.10 of the Agreement emphasizes the importance of private sector involvement in enhancing supply chain resilience, efficiency, and sustainability. In India, efforts are underway to collaborate with industry leaders, academia, and experts to identify critical sectors and goods for greater cooperation with IPEF partners.
