India Boosts Global Trade Ties with Supply Chain Resilience Agreement

India has signed the Supply Chain Resilience Agreement under the Indo-Pacific Economic Framework for Prosperity. The agreement, now in force, aims to fortify supply chains for national security and economic stability. India's strategic plans include leading efforts in the healthcare sector and establishing collaboration on critical sectors.

India has strengthened its role in global trade by signing the Supply Chain Resilience Agreement under the Indo-Pacific Economic Framework for Prosperity, as announced by the Ministry of Commerce and Industry. This 14-member regional pact seeks to ensure essential supply chain stability, paramount for national security and economic welfare.

The agreement, effective from February 24, 2024, instituted a Supply Chain Council with the US leading it as Chair and India as Vice-Chair. This council oversees partners who collectively contribute to about 40% of the global GDP and 28% of worldwide trade, highlighting its significance in international trade networks.

The agreement is designed to enhance economic, commercial, and trade relations, improving supply chain resilience across critical sectors. It outlines private sector engagement to boost supply chain efficiency, sustainability, and inclusivity. India is actively identifying key goods and sectors vital for collaboration, ensuring their security and stability.

The inaugural SCC meeting in September 2024 in Washington marked significant progress, setting up Action Plan Teams targeting key areas such as Semiconductors, Critical Minerals, and Chemicals. India also aims to spearhead initiatives in the healthcare and pharmaceutical sectors.

Furthermore, India's participation in the Crisis Response Network's first meeting featured an exercise to refine responses to potential supply chain disruptions. Notable US-India memoranda have been established concerning semiconductors and critical minerals, fortifying India's supply chain resilience in these crucial areas.

(With inputs from agencies.)