What is Supply Chain Resilience / Raw Material Security?
Historical Background
Key Points
9 points- 1.
Involves identifying critical raw materials and their sources, assessing risks, and developing mitigation strategies.
- 2.
Strategies include diversification of suppliers, domestic production, strategic stockpiling, and long-term procurement agreements.
- 3.
Focus on reducing over-reliance on a single country or region for critical inputs.
- 4.
Promoting local value addition and backward integration to reduce import dependence.
- 5.
Developing robust logistics and infrastructure to ensure smooth flow of goods.
- 6.
Collaboration with international partners through Supply Chain Resilience Initiative (SCRI).
- 7.
The shift from Turkey to Oman for marble blocks is a direct example of diversifying sources for raw material security.
- 8.
Crucial for sectors like manufacturing, electronics, pharmaceuticals, and energy.
- 9.
Aims to prevent disruptions that can lead to production halts, price volatility, and job losses.
Visual Insights
Supply Chain Resilience & Raw Material Security for India
This mind map outlines the critical aspects of supply chain resilience and raw material security, their drivers, strategies, and relevance for India's economy.
Supply Chain Resilience & Raw Material Security
- ●Drivers of Importance
- ●Key Strategies
- ●India's Initiatives
- ●Impact & Benefits
Evolution of Supply Chain Resilience Focus in India (2000 - 2025)
This timeline highlights key global events and policy responses that shaped India's focus on supply chain resilience and raw material security.
The concept of supply chain resilience gained significant traction globally after the COVID-19 pandemic exposed the fragility of highly optimized, globalized supply chains. For India, this coincided with the 'Atmanirbhar Bharat' initiative, leading to a concerted effort to diversify sourcing, boost domestic production, and engage in multilateral initiatives like SCRI to ensure raw material security and economic stability.
- 2000sGlobalization & 'Just-in-Time' Manufacturing: Focus on efficiency, cost reduction, and globalized supply chains.
- 2008Global Financial Crisis: Exposed vulnerabilities in interconnected global economies, but supply chain resilience not primary focus.
- 2011Tohoku Earthquake & Tsunami (Japan): Major disruption to global electronics and auto supply chains, highlighting regional risks.
- 2014Launch of 'Make in India': Initial push for domestic manufacturing to reduce import dependence.
- 2020COVID-19 Pandemic: Widespread global supply chain disruptions, exposed over-reliance on single sources (e.g., China for APIs, electronics).
- 2020Atmanirbhar Bharat Abhiyan: India's call for self-reliance, strategic reduction of imports, and boosting domestic production.
- 2021Supply Chain Resilience Initiative (SCRI): India, Japan, Australia launch initiative to diversify supply chains in Indo-Pacific.
- 2023Critical Minerals Policy: Government identifies 30 critical minerals, focuses on domestic exploration and international partnerships for procurement.
- 2024National Logistics Policy Implementation: Focus on improving efficiency and resilience of domestic and international logistics infrastructure.
- 2025Strategic Import Shift (Marble): Ban on Turkish marble, shift to Oman for raw material security and quality.
Recent Developments
5 developmentsPost-COVID-19, global emphasis on de-risking supply chains and moving away from "China-plus-one" strategies.
India's active participation in initiatives like Supply Chain Resilience Initiative (SCRI) with Japan and Australia.
Government push for Atmanirbhar Bharat to reduce import dependence in critical sectors.
Focus on securing critical minerals (e.g., lithium, cobalt) through international partnerships and domestic exploration.
Development of national logistics policy to improve efficiency and resilience of domestic supply chains.