Global Supply ChainImage Credit source: File Photo
The relationship between India and the US seems to be getting stronger after PM Modi’s visit to America. Partnership between India and America can be beneficial not only for both the countries but also for the world. In such a situation, China may get a big blow due to the strengthening of the relationship between America and India. America and India are all set to break the back of the dragon in the global supply chain. According to sources, India will make a new beginning by ending the pending business matters with America. Both the countries are forging a strong and futuristic partnership by increasing cooperation in sectors like Artificial Intelligence, Semiconductor, Space, Quantum and Telecom.
PM Modi says that India will create a reliable, secure, global supply chain and value chain like a reliable partner in the midst of global uncertainties. After many efforts, a new chapter has been added to the Comprehensive Global Strategic Partnership. This has given the country a new direction and new energy. India and America have decided to start work to strengthen the global supply chain. Due to which the global supply chain has once again come into the limelight. China’s participation in this supply chain is high. That’s why America is worried about the big participation of China in the global supply chain.
Know what is Global Supply Chain?
A global supply chain is a type of global network that organizations use to manufacture products and services. This network can spread to many countries. So that necessary supplies can be made for production and services. In many global supply chains, information, resources, processes, etc. flow around the world. From this point of view, the cost of production can be reduced by cheap technology, resources, etc. in this tech sectors and expansion can be done by going to new markets. If a company uses Indian raw material, produces it in Europe and sends it to Africa, then its supply chain is global.
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This is how China grew in the global supply chain
In the last few decades, China has become a major part of the global supply chain. The reason for this was the structure development for cheap labor and fast manufacturing, due to which many of the world’s especially big companies established their production centers in China. So that their cost can be reduced. Along with this, ports and cargo ships have also been made, so that there is no problem in supply. In such a situation, the dependence of the business of western countries including America on China started increasing.
Need to end China’s supremacy in global supply chain
In such a situation, by ending the dependence of its businesses on China, America wants to completely end China’s supremacy in the global supply chain with India. America has promoted the policy of China Plus One for its company the most that the company should start its production in any country other than China. In other countries, India can be a very strong contender. India itself also wants to move forward in the global supply chain. Therefore, now both America and India together are preparing to break the back of the dragon in the global supply chain.