The Commerce and Industry Ministry announced on Wednesday that India has been elected as Vice-Chair of the Supply Chain Council, marking a significant milestone in the establishment of three councils by the 14 partner countries of the Indo-Pacific Economic Framework (IPEF) to strengthen economic cooperation in the region.
Under the historic Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement, a measure pertaining to supply chain resilience has been taken, as the global community searches for a substitute for China in the manufacture of commodities.
According to the Commerce Ministry, the first-ever virtual meetings of the Supply Chain Council (SCC), Crisis Response Network (CRN), and Labor Rights Advisory Board (LRAB) represented a significant advancement in partner country cooperation for enhancing supply chain resilience in the area.
According to the official statement, during these first meetings, 14 IPEF partners reaffirmed their commitments and shared resolve to foster closer cooperation in order to improve the competitiveness and resilience of vital supply chains, as well as to better anticipate and handle supply chain disruptions that could jeopardize economic prosperity while defending workers’ rights.
India is anticipated to be a key player in the Indo-Pacific region’s development of a robust supply chain. At the IPEF Ministerial Conference in Singapore earlier in June 2024, Secretary of Commerce Sunil Barthwal emphasized that India hopes to play a significant role in the global supply chain thanks to its natural resources, talented labor force, and supportive policies. The government takes the effort to ensure that India participates in a variety of reliable supply chains and to identify solutions.
The IPEF partners established three supply chain bodies in accordance with the Supply Chain Agreement: a Crisis Response Network to serve as a forum for a collective emergency response to urgent or impending disruptions; a Labor Rights Advisory Board that convenes employers, workers, and governments to strengthen labor rights and workforce development across regional supply chains; and a Supply Chain Council to pursue focused, action-oriented work to strengthen the supply chains for those goods and sectors most critical to national security, public health, and economic well-being, the statement explained.
India discussed the significance of having a robust supply chain network and the constant discussions it has with stakeholders on areas that are vital to it in terms of public health, national security, and economic prosperity. India also emphasized the importance of cooperation in the field of skill development. It was emphasized that finding skills gaps and making sure they are filled across our economies will be of utmost importance. This includes providing technical support for workforce development and digitalization to create a robust ecosystem for supply chains.
Each of the three supply chain bodies chose a Chair and Vice Chair during the meetings; they will hold these positions for a period of two years. The chairs and vice chairs who were elected are — The Labor Rights Advisory Board is chaired by the United States and vice-chaired by Fiji. The Supply Chain Council is led by the United States and India. The Crisis Response Network is chaired by the Republic of Korea and vice-chaired by Japan.
On the fringes of the Supply Chain Summit, in September 2024, in Washington, D.C., the Supply Chain Council conducted its first in-person meeting where it accepted its Terms of Reference and discussed early work goals to be further explored. The Crisis Response Network organized its first in-person meeting to coincide with the Supply Chain Summit and talked about short- and long-term priorities, including doing a tabletop exercise. Priorities for enhancing labor rights throughout IPEF supply chains were deliberated by the Labor Rights Advisory Board. The statement went on to say that the meeting will further the work of the Labor Rights Advisory Board and concentrate on the labor-related clauses in the IPEF Clean Economy Agreement and Fair Economy Agreement.
The IPEF partners also emphasized the importance of the next in-person meeting, which is scheduled for September 2024 in Washington, D.C.
With 14 partner countries—Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the United States—IPEF was introduced in Tokyo on May 23, 2022. In order to promote growth, economic stability, and prosperity in the area, the IPEF works to enhance economic involvement and cooperation among its member nations.
