A supply chain refers to every step involved in delivering a finished product to customer (File)
The world is eyeing solutions to its supply chain concerns caused by health crises, disasters, and geopolitical events. The coronavirus crisis and the Ukraine war are among the recent events that disrupted the global supply chain, resulting in steep price rises across the world.
At this juncture, India is charting its way to be more involved in the global supply chains as an alternative to China as it seeks to become the third largest economy by the end of this decade.
A supply chain refers to every step involved in delivering a finished product or service to customers. A disruption at any level leads to delays, unavailability or even rise in prices, affecting the markets at large.
Where is the solution?
India has emerged as a trustworthy nation during the Covid pandemic, highlighted Prime Minister Narendra Modi on Sunday, questioning the efficiency of the global supply chain that ceased to exist when the world required it the most.
India, which has been an ideal market for the global sellers, is now emerging as a manufacturing hub with an immense potential. Several top companies like Apple have already started production in India while the country aims to begin domestic microchips production by the end of 2024.
"The demand for Indian goods has increased at the global stage," the Prime Minister said, citing his 'Vocal for Local' mantra that seeks to boost domestic production in a more globalized world.
He said supply chain resilience and sustainability must now be the focus to take businesses beyond the bottomline.
Finance Minister Nirmala Sitharaman too asserted that India is eyeing a key role in the supply chain through its output-incentive plans and the growth of its domestic consumer market.
Ms Sitharaman said the production-linked incentive schemes are bringing global value chains to India which will help the country become a bulk producer of manufactured goods.
India is also eyeing a key space in the electronics sector with 'Made in India' laptops and computers. It has already become the second largest producer of mobile phones.
The western world is shifting its supply chains from China in view of the geopolitical situation and India seeks to make most of this opportunity. The government has set an ambitious target of reaching $2 trillion in overall exports every year by 2030.