By focusing on lowering the logistics cost, building holistics infrastructure under the Gati Shakti initiative and using R&D and technology, India is looking to integrate itself with the global supply chains, a senior commerce ministry official said.
“Will have to look for ways to integrate better with global value chains. We aim to bring down logistics costs, build resilient supply chains, and attract investment. Gati Shakti is helping plan multi-modal connectivity across India. We have a holistic approach to building infrastructure to bring last-mile connectivity in a multi-modal manner,”Sumita Dawra, Special Secretary, Commerce Ministry said at a Confederation of Indian Industries (CII) event.
The 100 lakh crore, Pradhan Mantri Gati Shakti National Master Plan is aimed at developing holistic infrastructure in India.
Dawra says, that integration with global supply chains provides opportunities for growth and employment.
Highlighting that the COVID-19 pandemic caused massive disruptions and realignment of the global supply chains, Dawra points out that manufacturing and logistics are not enough to build resilient supply chains. She says, to bring in resilience we will also need R&D, and technology.
The integration of Indian supply chains with that of global chains will also require strengthening of domestic connectivity.
“Railways is planning movement of coal connectivity via ports, roads. Localising manufacturing is important to add value in domestic supply chains. Services of skilled labour are needed to boost supply chains and add value,” she said.
The government has already announced the production-linked incentive (PLI) scheme in 14 sectors, to boost manufacturing and exports.
“Production-linked incentive schemes will help bring cutting-edge technology, and scale. From being an importer, India has now become an exporter of mobile phones. We are exporting auto parts to Europe today. Impressive sales have been seen in sectors in which PLI scheme exists like white goods,” she said.
The disruption in Supply chain have also had an impact on aircraft manufacturing.
Salil Gupte, President, Boeing India, said that in critical areas of technology, diversion in supply chains has been witnessed because of disruptions.
“Today, a passenger aircraft manufacturing takes six to eight years as compared to 18 months earlier. Risks in supply chains have to be more spread out. Strong engineering and manufacturing partners are needed to boost supply chains,” Gupte said at the event.