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Impact of Coronavirus on Supply Chain

Mar 17,2021

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 andIndustry, ShriHardeep Singh Puri, in a written reply in the Lok Sabha today.