Topic: 2024-Supply Chain Stability
Country: India
Delegate Name: KenZie Low
Special Political Committee
Supply Chain Stability
Republic of India
KenZie Low
City High Middle
Supply chain instability has been a crisis for the international community; India is taking initiatives to increase supply chain resilience. The Covid-19 pandemic revealed the many flaws of the world’s current supply chain model. Due to the pandemic, the global community suffered from labor shortages, dramatic shifts in supply and demand, production shortages, limited imports, and increased inflation. In addition to the pandemic, global conflicts such as the Russian-Ukraine war and the situation in the South China Sea have disrupted essential shipping lanes and decreased the distribution of essential commodities. Port congestions have delayed the flow of goods, and domestic issues within nations such as climate change or the lack of corporate executive awareness about supply chain sustainability have all contributed to the declining resilience of supply chains. In 2024, the supply chain is more vulnerable than ever. The UN Global Compact declared the supply chain as the biggest challenge facing their stability performance. The Republic of India is aware of this and is taking major initiatives to improve the global supply chain and become an important component of increasing supply chain resilience.
When the supply chain began to falter in 2020, India began to implement policies that would improve their production capacity. As the fastest-growing economy, India aims to become one of the world’s biggest producers. The government of India plans to invest $1.4 trillion in infrastructure projects, and $25 billion to improve shipping and port infrastructure. The nation works to digitalize its infrastructure and improve energy, transport, and urban infrastructure. With increased efficiency and productivity, many countries in 2024 look into India for their operations as a resilience tactic. Shortly after the pandemic, India implemented a Goods and Service tax. This tax eliminated all indirect taxes and provided a single, value-added tax to the manufacturing, sale, and consumption of both goods and services. The tax made trade between India and other countries more straightforward and reduced the trade barrier, making India more popular on the supply chain scale. Prime Minister Modi also created the “Make in India” campaign in 2014. The campaign includes multiple components to shape India into a stable, global supplier: transforming the manufacturing sector and infrastructure in India, re-establishing the relationship between the government and the economy, and instilling confidence in India’s production sector and its global partners. The government of India has also implemented ESG (Environmental, Social, Governance) initiatives to further broaden business sustainability efforts. The initiatives emphasized responsible corporate management and business strategies to further strengthen the supply chain. India has also concentrated on AI talent and worked to digitalize their infrastructure. India was also part of IMEEC, the rail network between India and Europe which would increase trade speed by 40% percent. Notably, India and Australia created the INDAUS ECTA (India-Australia Economic Trade Agreement). The trade agreement consists of multiple policies and plans that apply to all the G20 countries: implementation of preferential tariffs to create more trade-friendly environments, reforming migration policies to share talent, increasing visibility, and creating a rapid response forum.
The Republic of India’s rigorous efforts to become a sustainable supply chain contributor emphasize the nation’s increasing advocacy for supply chain reforms. India proposes that all nations diversify their sources and invest in other emerging producers such as India. This diversification will increase resilience and provide more stability in the supply chain. India urges other countries to replicate India’s efforts to improve their domestic production. Focusing on domestic manufacturing and infrastructure can further strengthen countries’ production capacities. India also believes in creating trade-friendly environments; implementing tamer border regulations and consistent taxation such as the goods and services tax can share talent across the globe and create more efficient and convenient supply chain trade. In the likes of the INDAUS ECTA, India proposes G20 countries to discuss creating a rapid response forum. The forum would involve developing ways to detect delays in goods and unforeseen disruptions in borders, as well as ensuring international trade coordination. The trade agreement also proposes greater visibility; India recommends that countries share standardizations of regulatory procedures in essential sectors and share methods for navigating difficult supply chain challenges. India also supports the digitalization of trade, utilizing technology such as AI to increase supply chain efficiency. With conscientious efforts from the leading trade nations and increased awareness of the flaws of the supply chain, India believes that the global community can transform the supply chain to become efficient, transparent, and productive.
Works Cited
Bhaskar, Natasha, and Rahul Sen. Creating a Resilient Supply Chain Framework: The India- Australia Economic Cooperation and Trade Agreement (INDAUS ECTA) and Its Significance for the G20 Task Force 1 Macroeconomics, Trade, and Livelihoods: Policy Coherence and International Coordination T20 Policy Brief. 2023.
Carmit Glik. “Council Post: Why the Supply Chain Crisis Positioned India for Global Trade Growth.” Forbes, 12 Aug. 2024, www.forbes.com/councils/forbesbusinesscouncil/2023/06/05/why-the-supply-chain-crisis-positioned-india-for-global-trade-growth/. Accessed 26 Nov. 2024.
ET CONTRIBUTORS. “Global Supply Chain Shift: Has India Finally Arrived?” The Economic Times, Economic Times, 22 June 2024, economictimes.indiatimes.com/small-biz/trade/exports/insights/global-supply-chain-shift-has-india-finally-arrived/articleshow/111182936.cms?from=mdr. Accessed 26 Nov. 2024.
“India’s Play in Supply Chain Diversification.” BCG Global, Boston Consulting Group, 21 July 2023, www.bcg.com/publications/2023/india-play-in-supply-chain-diversification. Accessed 26 Nov. 2024.
SupplyChainBrain. “India’s Modi Calls for Greater Supply Chain Resiliency.” Supplychainbrain.com, SupplyChainBrain, 24 Aug. 2023, www.supplychainbrain.com/articles/37978-indian-prime-minister-calls-for-greater-supply-chain-resiliency. Accessed 26 Nov. 2024.
