India's Chief Economic Advisor Calls for Supply Chain Security Framework
India needs supply chain security framework like China, US: Chief Economic Advisor V Anantha Nageswaran
The Indian Express
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India's Chief Economic Advisor V Anantha Nageswaran emphasized the need for a domestic supply chain security framework to counter restrictive measures from China and the U.S. He highlighted the challenges for companies trying to relocate from China and called for institutional mechanisms to attract foreign investments.
- 01India needs a supply chain security framework similar to those in China and the U.S.
- 02Nageswaran criticized the Indian private sector for its reluctance to invest.
- 03China's recent decrees restrict companies from relocating their supply chains.
- 04India lacks a 'blocking statute' to counter foreign jurisdiction measures.
- 05The U.S. CFIUS framework serves as a model for India's proposed measures.
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During the Second Annual Isaac Centre for Public Policy Growth Conference at Ashoka University, V Anantha Nageswaran, India's Chief Economic Advisor, stressed the necessity for India to establish a supply chain security framework akin to those in China and the United States. He warned that foreign companies will face increasing challenges in exiting China due to recent decrees aimed at penalizing those attempting to relocate their supply chains. Nageswaran criticized the Indian private sector for its hesitance to invest, suggesting that this reluctance has contributed to demand uncertainty. He pointed out that India currently lacks a 'blocking statute' to protect its interests against foreign jurisdiction measures and called for the development of institutional mechanisms to attract foreign investments. He proposed that India should utilize its market access as leverage to enhance its appeal to companies looking to diversify away from China, similar to the U.S. Committee on Foreign Investment (CFIUS), which reviews foreign investments for national security risks.
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The proposed supply chain security framework could enhance India's attractiveness for foreign investments, potentially boosting economic growth.
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