{"id":148404,"date":"2021-11-23T20:44:56","date_gmt":"2021-11-23T15:14:56","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=148404"},"modified":"2021-11-23T20:46:35","modified_gmt":"2021-11-23T15:16:35","slug":"another-supply-chain-crisis","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/another-supply-chain-crisis\/","title":{"rendered":"Another Supply Chain Crisis?"},"content":{"rendered":"\n<p><strong>News:<\/strong> US Federal Reserve chair Jerome Powell recently said that Americans should be prepared for the global supply chain to remain in crisis through 2022.<\/p>\n<p>Covid-induced supply chain disruption highlighted the loopholes of total dependence on one country for vital products, and diversification will take a few years to implement.<\/p>\n<h5><strong>What is the risk to the global supply chain?<\/strong><\/h5>\n<p>If China\u2019s <strong>\u2018zero- Covid strategy\u2019 fails<\/strong> after the Winter Olympics in February, there is going to be a major crisis. <strong>Delta variant <\/strong>could further the crisis.<\/p>\n<p>-if it experiences a devastating Covid wave, the Chinese government will be forced to clamp down on exports of critical products, to fulfill the demand of its own population.<\/p>\n<p>Lean manufacturing processes and just-in-time delivery mean a factory closure in one Asian country can unleash a global crisis.<\/p>\n<h5><strong>How much is the dependence of the world on China for products?<\/strong><\/h5>\n<p>According to the United Nations, China accounts for 28.7% of global manufacturing output. China is India\u2019s largest trading partner; bilateral trade was at $92.68 billion in 2019.<\/p>\n<p>A major chunk of <strong>electronic components<\/strong>, <strong>auto parts<\/strong>, <strong>consumer durables<\/strong>, active pharmaceutical ingredients (<strong>APIs<\/strong>), and key starting materials (<strong>KSM<\/strong>) required to manufacture lifesaving drugs are imported from China.<\/p>\n<p><strong>In case of any disruption, global healthcare<\/strong> would be severely affected. For example, 80% of heparin(used to prevent blood clotting) comes from China. Without heparin, critical care will suffer, virtually paralyzing the entire global healthcare delivery system.<\/p>\n<h5><strong>What needs to be done by India?<\/strong><\/h5>\n<p>It is important for every Indian industrial body to create a checklist of vulnerable items and secure supply till the end of 2022.<\/p>\n<p>Most countries cannot be self-reliant due to small aging populations, which means a small consumer base<br \/>\nor a lack of a talented workforce. It is time for India to enhance its status by becoming a global manufacturing hub.<\/p>\n<p><strong>Source:<\/strong> This post is based on the article \u201c<strong>Another Supply Chain Crisis?<\/strong>\u201d published in <strong>Times Of India<\/strong> on 22 November 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: US Federal Reserve chair Jerome Powell recently said that Americans should be prepared for the global supply chain to remain in crisis through 2022. Covid-induced supply chain disruption highlighted the loopholes of total dependence on one country for vital products, and diversification will take a few years to implement. What is the risk to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/another-supply-chain-crisis\/\">Continue reading <span class=\"screen-reader-text\">Another Supply Chain Crisis?<\/span><\/a><\/p>\n","protected":false},"author":10335,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216],"class_list":["post-148404","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/148404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10335"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=148404"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/148404\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=148404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=148404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=148404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}