Business News | India Signs Supply Chain Resilience Agreement Under IPEF, with USA as Chair and India as Vice-chair
Get latest articles and stories on Business at LatestLY. The agreement came into force on February 24, 2024. Under the Agreement, a Supply Chain Council (SCC) has been set up with the US as Chair and India as Vice-Chair.
New Delhi [India], December 3 (ANI): India has signed the Supply Chain Resilience Agreement (Pillar-II) in November 2023 under the Indo-Pacific Economic Framework for Prosperity (IPEF), a 14 member plurilateral grouping in the region, Ministry of Commerce and Industry said in a release.
Union Minister of State for Commerce and Industry, Jitin Prasada, in a written reply in the Lok Sabha on Tuesday, said that the agreement seeks to strengthen supply chain crucial for national security and economic stability.
The agreement came into force on February 24, 2024. Under the Agreement, a Supply Chain Council (SCC) has been set up with the US as Chair and India as Vice-Chair.
IPEF partners represent approximately 40 percent of the global GDP, and 28 percent of global goods and services trade, making it crucial for international trade dynamics.
The Agreement seeks to strengthen economic, commercial, and trade relationships among enterprises in the economies of the Parties and improve supply chain resilience in critical sectors.
Article 6.10 of the Agreement also encourages private sector engagement to improve the resilience, efficiency, productivity, sustainability inclusivity etc. of IPEF supply chains, the minister said quotes the release.
Article 10 of the Agreement provides for identification of critical sectors or key goods by the IPEF partners towards ensuring national security, public health and safety, or prevention of significant or widespread economic disruptions.
India is closely working with stakeholders such as industry, academia, experts, etc. for identification of critical sectors or key goods for collaboration with IPEF partners for India's supply chain resiliency.
In September 2024, the first SCC meeting in Washington led to the formation of Action Plan Teams focusing on key areas such as Semiconductors, Critical Minerals, and Chemicals. In the meeting, India has expressed its willingness to lead a proposed action plan team on the healthcare/pharma sector.
Two Sub-Committees focusing on Logistics and Movement of Goods, and Data and Analytics have also been formed.
India participated in the first meeting of Crisis Response Network held in Washington DC in September 2024, which included a tabletop exercise aimed at shortening response time in actual crisis situations by simulating scenarios where supply chain disruptions are highly likely.
Further, two Memorandum of Understanding (MoUs) have also been signed by Department of Commerce with the USA in last two years: one in the sector of semiconductors and other in the sector of critical minerals both of which are a strong step towards securing India's Supply Chain resilience in these sectors. (ANI)
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