Modi, Biden lay emphasis on stable global supply chains

PM Narendra Modi on Sunday underscored three vital aspects for improving global supply chains during the session on Global Supply Chain Resilience convened by the US President on the sidelines of the G20 Summit in Rome.

Modi asserted that trusted sources, transparency and time-frame are three vital fields that regulate the global supply chain.

The PM noted that while India is already a trusted source in IT and Pharma supply chains, it is keen to participate in the clean technology supply chain. He laid emphasis on the need to have a stable and resilient global arrangement.


The leaders discussed ways in which "governments can alleviate pressure points in the global supply chain ecosystem," MEA spokesperson Arindam Bagchi tweeted.
Resilient global supply chains have topped Modi’s agenda over the last two years as he has pitched India as a reliable partner in the initiative. While addressing session one of the summit on Saturday, Modi invited G20 countries to make India their partner in economic recovery and supply chain diversification. He also brought out the fact that despite challenges posed by the pandemic, India continued to be a trusted partner in the supply chain.

It may be recalled that a Supply Chain Resilience Initiative (SCRI) was launched by India, Japan and Australia in April to help promote trade facilitation by identifying risks and mapping out complementarities. The SCRI aims to reduce dependence on China amid a likelihood of rechurning of supply chains in the Indo-Pacific region due to the Covid-19 pandemic.

Biden on his part highlighted disruptions in the global supply chain. The idea of the meet was to discuss ways through which governments can alleviate pressure points in the global trading system. During Sunday’s meeting, the US president discussed how each country can identify and resolve bottlenecks. The goal is to help relieve pressures and boost growth.

The world’s supply chain — already disrupted by the pandemic — is continuing to bear the brunt of surging consumer demand, labour shortages and overseas manufacturing delays, which has led to higher transportation costs and inflation.