The global economy has become increasingly interconnected, thanks to long-standing supply relationships that have allowed businesses to thrive and grow efficiently. However, this interconnectedness has also introduced new challenges and risks, particularly in the face of frequent and unexpected disruptions to the value chain.
To address these issues, a task force has been established: the Task Force on Inclusive GVCs for Resilient Global Trade and Investment. Chaired by Mallika Srinivasan, who is also the chairman and managing director of Tractors and Farm Equipment Ltd., this task force aims to identify the key challenges and develop strategies to build resilience in supply chains.
In a recent interview with BQ Prime’s Sajeet Manghat at the B20 Summit, Srinivasan emphasized the need for both the private sector and the government to take action. On the private side, there is a crucial need for risk mitigating sourcing practices. Businesses must be proactive in diversifying their supply chains and finding alternative sources of raw materials and components. This will help them reduce their dependence on a single source and minimize the impact of disruptions.