Context: The pandemic and Israel’s pager attacks on Hezbollah have again exposed security gaps in the supply chain. Countries are exploring resilient strategies to shift their supply chain dependencies, aiming for enhanced security in volatile geo-political scenarios.
Relevance: GS 3 (Internal Security)
Practice question: Explain the need for diversification of the supply chain considering India’s security. Suggest strategic measures to achieve supply chain resilience with a special focus on the Atmanirbhar Bharat programme. (250 words )
Shifting strategies :
- Just in Time (Efficiency): Cost efficiency was the key focus, and supplies were sourced across the globe.
- Just in Case (Resilience): The COVID-19 pandemic exposed vulnerabilities of the Just in Time strategy. The strategy shifted to Just in Case to build the resilience of the supply chain.
- Current demand, Shift to “Just to Be Secure”: The recent geopolitical tensions have triggered a new focus on security within supply chains, moving beyond mere resilience to proactive measures against threats.
Recent Developments Indicating Shift to Security
U.S. Proposed Rules on Connected Vehicles:
- In September 2024, the U.S . proposed regulations to prohibit imports and sales of connected vehicle systems linked to China or Russia. Because these systems were capable of being used for espionage.
Israeli Pager Attack:
- Communication devices (pagers and walkie-talkies) used by Hezbollah were used by Israel to attack, resulting in casualties of over 30, exposing the system’s vulnerabilities.
Supply Chain Security Concerns
- Previous Concerns:
- The U.S. and its allies previously banned Huawei and other Chinese companies from participating in 5G infrastructure due to fears of espionage and sabotage through backdoor installations.
- Initial security concerns have expanded from telecommunications to other critical industries, including semiconductors and automobiles.
Implications of the Shift from Resilience to Security
- Increased Scrutiny of Supply Chains: supply chains were reassessed by governments and companies for potential threats.
- Shift in Global Production Strategies: countries are changing their production strategies from depending on a single source to relying on multiple credible sources.
Recommendations for India
Two-Pronged Approach:
- Just to Be Secure: Implement “trust but verify” practices, including:
- Periodic Audits: Regular inspections and compliance checks for high-risk technologies.
- On-site Evaluations: Ensuring suppliers adhere to national and international security standards.
- Zero Trust Policy: For the most critical technologies (e.g., military and intelligence applications), adopt a zero-trust approach:
- Strict Procurement Procedures: Assume all technologies could be compromised and apply rigorous scrutiny before acquisition.
- Continuous Monitoring: stringent monitoring of technologies post-deployment to ensure security compliance.
- Diversification of Supply Sources: For less critical technologies, promote “just in case” strategies:
- Vendor Diversification: Reduce dependency on any single supplier by sourcing from multiple vendors.
- Friendshoring: Strengthen supply chain resilience by prioritising partnerships with allied nations.
Conclusion
India should focus on comprehensive strategies to integrate supply chain and security. India must emphasise supply chain resilience while giving a boost to self-dependency through schemes like Atmanirbhar Bharat.
