Evolving Landscape of Global Supply Chains
Global supply chains are moving from a focus on efficiency to resilience and now to security.
The pandemic highlighted vulnerabilities, prompting a shift from "just in time" to "just in case" strategies.
Recent events have intensified the focus on security, moving supply chains to a "just to be secure" approach.
A Shift from Efficiency to Resilience and Now, Security
From the 1980s to 2010s, supply chains were optimized for maximum efficiency with a global approach.
The late 2010s recognized over-dependence on Chinese exports, prompting a shift to make supply chains more resilient.
Events like the U.S. banning Huawei and the recent Israeli attack have led to an increased emphasis on security measures.
Recent Incidents
New U.S. rules may prohibit imports from entities linked to China or Russia due to national security risks in connected vehicle systems.
Israeli Pager Attack: An attack on communication devices in Israel raised alarms about vulnerabilities in even basic technologies.
Past actions against Chinese telecoms reflect ongoing concerns about espionage and sabotage in supply chains.
India's Approach to Ensuring Secure Supply Chains
India aims to combine "just to be secure" and "just in case" strategies for supply chain security.
For critical technologies, India would conduct audits and inspections to ensure compliance with security standards.
For the most sensitive technologies, India assumes all products may be compromised, requiring strict procurement checks and ongoing monitoring.
For less critical technologies, India plans to diversify suppliers and engage in friend-shoring to mitigate risks.
Way Forward
India needs to balance between stringent security measures and maintaining efficient supply chains.
Ongoing assessment and adaptation of security measures will be crucial as global dynamics change.
Engaging with international partners and allies will be important for enhancing supply chain security.
Strengthening domestic capabilities and alternative supply sources will help mitigate vulnerabilities.
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