Japan announces an initiative to get into a trilateral supply chain contract with India and Australia.

One of the recent headlines that came as a fresh move to reduce the dependability factor from China, came with the news of Japan proposing a trilateral tie between India and Australia. As per Rahul Mehra CEO AWL India, the one voice and verbiage that echos almost all throughout is the slogan of keeping China out. Being launched under the banner of Supply Chain Resilience Initiative (SCRI), this update means focusing and improving on the infrastructure and electronics in the major supply chain units.

Reasons for this initiative:

According to Mr. Rahul Mehra, one of the primary aims of initiating this change is to remove the dependency factor that many nations have from China. As cited by government sources, this move comes with an attempt to neutralize the aggressive political and military behavior that is being inflicted by China.

Objectives for going through with this

Mr.Rahul Mehra claims that this trilateral joint movement is to direct a large percentage of Foreign Direct Investments (FDI) into the Indo-Pacific region. In the long run, the result will be the strengthening of the Indo-Pacific region and garnering a positive business relationship with other strong partner countries.

Along with this comes the other major reason to harbor a strong India-Japan partnership as well. This in turn will strengthen the Indo-Japan trade relationship as well, removing the dependency of both nations on China.

The trilateral deal between India - Japan and Australia will also help empower the Indo pacific region and assist them in becoming an economic superpower. Mr.Rahul Mehra feels that it is high time that the dependency on China is reduced and that India becomes self-sufficient by strengthening its supply chain model. 

“The increasing tension that US-China and China India is witnessing is only a reason more to work on a concrete backup plan that can ensure that there is no major damage done to the supply chain networks”-- claims Mr. Mehra.

The whole crux of the matter is to highlight the importance of the ASEAN (Association of Southeast Asian Nations) region after coming to a mutual understanding between Japan, Australia, and India. In turn, India is concentrating on focusing on going vocal for local and then from local to global.

Suggestions for India

According to Mr.Rahul Mehra, India needs to build resilience against China so that they have a flawless supply-demand chain. With this trilateral deal getting signed off these are the benefits that India will see.

•  Ease of doing business
•  Major tax benefits
•  A boost to domestic manufacturing
•  Ease of leveraging the service sector
•  An overall boost to supply chain infrastructure and technology.