On April 27, 2021, During a trilateral Ministerial Meeting, the Trade Ministers of India, Japan & Australia virtually launched the ‘Supply Chain Resilience Initiative (SCRI)’.
- Objective – SCRI aims to build a resilient supply chain with focus on free, transparent trade & investment environment in the Indo-Pacific region.
- It will reduce the dependency of the 3 countries on China and counter its dominance on Trade.
- The meeting was attended by Australia’s Minister for Trade, Tourism and Investment Dan Tehan, India’s Minister for Commerce and Industry Piyush Goyal & Japan’s Minister for Economy, Trade and Industry Kajiyama Hiroshi.
Action Plan
i.During the initial stages, SCRI will focus on sharing best practices on supply chain resilience & holding investment promotion events for stakeholders to diversify their supply chains.
ii.The countries will undertake policy measures to
- Support the increased use of digital technology in trade
- Promote trade and investment diversification
iii.Emphasis will be given on risk management and continuity plans to avoid supply chain disruptions.
iv.The Ministers of 3 nations will convene once in a year for consultation on implementation of SCRI.
Fact
Based on 2019 numbers, the combined GDP of India, Japan & Australia stood at USD 9.3 Billion, while the combined merchandise goods and services trade stood at USD 2.7 Trillion and USD 900 Billion.
What is a Supply Chain?
- It is a series of activities done by an organisation/country/entity to deliver goods or services to the consumer.
- A strong & diversified supply chain will ensure that a country does not depend on one or two countries.
- It will be essential during unanticipated events like Tsunamis, Earthquakes and Pandemic, ensuring that there is no disruption or halt in trade which may impact the economic activity in the country.
- Japan exports USD 135 Billion worth goods to China. In the case of Australia, China accounts for 32.6% of exported goods.
- India is dependent on China for Active Pharmaceutical Ingredients & Electronics.
Recent Related News:
i.On September 1, 2020 India, Japan and Australia agreed to launch a trilateral Supply Chain Resilience Initiative (SCRI) in the Indo-Pacific region.
About Australia
Prime Minister – Scott Morrison
Capital – Canberra
Currency – Australian Dollar (AUD)
About Japan
Capital– Tokyo
Currency– Japanese yen
Prime Minister– Yoshihide Suga
