Supply Chain Resilience Initiative

On April 27, 2021, India, Australia and Japan formally launched the Supply Chain Resilience Initiative. The initiative was launched to counter the dominance of China in the Global Supply Chain. It aims to prevent disruptions in the supply chain as seen during COVID-19 pandemic. The initiative will mainly focus on diversification of investment and digital technology adoption.

Objectives of Supply Chain Resilience Initiative

  • To increase Foreign Direct Investment and eventually turn Indo-Pacific region into an “Economic Powerhouse”.
  • To build complementary relations between the partner countries
  • To build on the existential Supply Chain Network.

About Supply Chain Resilience Initiative

  • It was proposed by Japan.
  • It mainly aims to reduce the dependence on China.


  • According to the Confederation of Indian Industry (CII), the share of Chinese imports into India stood at 14.5%. The Chinese imports dominate electronics, pharmaceuticals, automotive parts, chemicals, shipping and textiles. In Electronics alone China accounts to 45% of imports of India. During COVID-19, all these sectors were highly affected as India was heavily dependent on China for its raw materials especially in the field of Electronics and Pharmaceuticals.
  • The COVID-19 has revealed supply chain vulnerabilities and the monopolism enjoyed by China in the region.

Chinese moves

  • China recently formed an initiative with its Asian neighbours Nepal, Pakistan, Afghanistan, Sri Lanka and Bangladesh to help them set up COVID-19 emergency supply reserves.
  • Also, the Sichuan Airlines of China recently suspended cargo flights to India that were taking crucial supplies of Oxygen concentrators to India.
  • Such belligerence (aggressive war like behaviour) of China even during COVID-19 pandemic has forced the countries to form the initiative.




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