The Corona Virus outbreak in China initially impacted the supply chains of Indian industries which are dependent on China for import of components, intermediaries and raw materials. Thereafter, the Chinese production resumed during the year. However due to the global supply chain shocks on account of  the pandemic,  countries are seeking  to build resilience in their supply chains to reduce over-concentration of  import sources.

The Government engaged with the Export Promotion Councils and Trade Bodies to address potential disruptions in their supply chains, secure and transport inventories available with various suppliers, and accordingly put them in touch with our Missions abroad. The Missions facilitated several Business-to-Business virtual meetings to broaden the supply base of the domestic industry.

The Government has also launched schemes such as Production Linked Incentive Schemes (PLIs) to promote domestic manufacturing capacities in critical sectors such as Key Starting Materials/Drug Intermediates, Active Pharmaceutical Ingredients apart from electronic components & mobiles etc. These would broaden the base of the supply chains and make products available at competitive prices.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Hardeep Singh Puri, in a written reply in the Lok Sabha today.

Supply chain resilience bolstered through domestic manufacturing incentives and diplomatic facilitation to diversify import sources and suppliers. Government measures to strengthen supply chain resilience address pandemic-induced shocks and over-concentration of import sources by diversifying suppliers and securing inventories. The State engaged Export Promotion Councils, trade bodies and diplomatic missions to facilitate B2B virtual meetings and transport of available inventories, while Production Linked Incentive schemes were introduced to build domestic capacity in critical sectors such as Key Starting Materials, drug intermediates, Active Pharmaceutical Ingredients, and electronic components and mobiles to broaden supply chains and improve competitiveness.