Daily Current Affairs : 2-August-2024
India has currently been elected as the Vice-Chair of the Supply Chain Council under the Indo-Pacific Economic Framework (IPEF). This is a significant step for the country, as it will play a crucial role in shaping the future of global supply chains. The council was established as part of the IPEF Supply Chain Resilience Agreement, which focuses on strengthening and stabilizing supply chains, particularly in the face of disruptions caused by economic shocks.
Objectives of the IPEF Supply Chain Council
The IPEF Supply Chain Council’s primary mission is to ensure supply chains remain resilient and adaptable during times of crisis. The agreement has several key goals:
- Mitigating Economic Disruptions: One of the council’s main objectives is to reduce the risks of supply chain disruptions that could have severe economic consequences.
- Enhancing Crisis Coordination: The council aims to improve coordination among countries during times of crisis to maintain the flow of essential goods.
- Reducing Dependence on China: Another strategic aim is to reduce over-reliance on China, particularly for critical supplies.
India’s Contribution to Global Supply Chains
As the Vice-Chair of the council, India’s role will be pivotal in driving initiatives that support supply chains vital for national security, public health, and economic stability. India, with its large and growing economy, is well-positioned to contribute to this mission in various ways:
- Promoting Diversification: India can help in diversifying supply chain sources to reduce dependency on any single nation.
- Strengthening Partnerships: India’s involvement will also enhance cooperation with other Indo-Pacific nations, fostering regional stability.
Important Points:
- India elected Vice-Chair: India has been chosen as the Vice-Chair of the Supply Chain Council under the Indo-Pacific Economic Framework (IPEF).
- IPEF Supply Chain Resilience Agreement: The council is part of the IPEF agreement focused on strengthening and stabilizing global supply chains.
- Main Objectives of the Council:
- Mitigate Economic Disruptions: Reducing risks of supply chain shocks that can affect economies.
- Enhance Crisis Coordination: Improving coordination among nations during times of crisis to ensure smooth flow of essential goods.
- Reduce Dependence on China: Aiming to decrease over-reliance on China for critical goods and supplies.
- India’s Strategic Contribution:
- Promote Supply Chain Diversification: India can help diversify sources to reduce dependence on any single nation.
- Strengthen Regional Partnerships: India’s involvement will enhance cooperation with Indo-Pacific nations, promoting regional stability.
Why In News
India has been elected as the Vice-Chair of the Supply Chain Council under the Indo-Pacific Economic Framework (IPEF), a significant achievement that highlights the country’s growing influence in shaping global supply chain policies and regional economic stability.
MCQs about Indo-Pacific Economic Framework
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Who was elected as Vice-Chair of the IPEF Supply Chain Council?
A. Japan
B. India
C. Australia
D. United States
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What is the main focus of the IPEF Supply Chain Resilience Agreement?
A. Expanding trade barriers
B. Reducing supply chain risks
C. Increasing dependency on China
D. Limiting international cooperation
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What is a key goal of the IPEF Supply Chain Council regarding China?
A. Strengthen dependency on China
B. Reduce over-dependence on China
C. Increase Chinese exports
D. Centralize supply chains in China
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How can India help improve global supply chains as Vice-Chair?
A. By focusing only on regional markets
B. By promoting diversification of supply sources
C. By limiting cooperation with other nations
D. By centralizing global supply chains
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