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The turmoil in the supply chain around the world has had a direct impact on India’s manufacturing sector. Raw material shortage and logistics constraints increased production costs and delayed deliveries. Now India is taking steps towards becoming self-reliant so that such global obstacles can be avoided.
New Delhi. In the last few years, the fluctuations in the world supply chain have had a deep impact on Indian manufacturing. The Covid-19 pandemic, the Russia-Ukraine war and rising shipping costs weakened this network. Due to this, factories in developing countries like India had to face challenges like shortage of raw materials, late delivery and increase in production costs. Due to this, production in Indian factories is adversely affected. To deal with such problems, India has started many campaigns ranging from ‘Self-reliant India’ to ‘Make in India’.
Crisis in raw materials and logistics
Many manufacturing companies in India are still dependent on parts and raw materials coming from China, America and Europe. When there is an interruption in the supply of these countries, Indian production also comes to a halt. For example, the shortage of chips in the automobile sector had stopped the delivery of thousands of vehicles. Similarly, electronics and pharma industries were also affected due to non-receipt of shipments on time. Keeping these in view, India has started a new campaign to speed up the chip making work. Under this, the work of promoting semiconductor industry in the country has been expedited.
Solution is being created through new policies
Government and industry are now working on the goal of Aatmanirbhar Bharat so that dependence on foreign supplies can be reduced. Local manufacturing is being promoted through schemes like ‘Make in India’, ‘Production Linked Incentive (PLI)’. Also, companies are now creating regional supply networks so that dependence on any one country can be reduced. India is now moving rapidly towards building a supply network. So that dependence on foreign countries can be reduced.
path to the future
Experts believe that India can play a big role in the global supply chain in the coming times. If the country further modernizes its logistics infrastructure, ports and export processes, it can become a ‘global manufacturing hub’. In this new era of supply chain, India has an opportunity to convert challenges into opportunities. If India faces these challenges successfully then it can become a global leader in the future.
