9 hrs ago
Mishra Says Supply-Chain Resilience Can Justify Higher Costs
PK Mishra said countries need to prepare for problems that can interrupt supplies.
Preparing can cost more than buying everything from the cheapest available source.
But the extra cost may be worthwhile if a disruption could cause serious harm.
Conflicts and the pandemic showed that supply chains focused only on efficiency can be fragile.
India now gets crude oil from 43 countries, up from 27.
It is also investing in renewable energy, nuclear power and storage.
Mishra said countries should build local industries, but those industries also need to be productive and competitive.
He said governments should balance being open to the world with being ready for disruptions.
PK Mishra said strategic reserves, alternative suppliers and domestic capabilities can cost more than relying on global markets.
He said the extra cost may be justified when disruptions could cause serious economic and social harm.
The pandemic and geopolitical conflicts exposed vulnerabilities in supply chains built mainly for efficiency, he said.
India has expanded its crude oil import sources from 27 countries to 43 while investing in several energy technologies.
Mishra said domestic manufacturing should be competitive, scalable and export-oriented, and that resilience must be accompanied by productivity.
- Who
- PK Mishra, Principal Secretary to the Prime Minister
- What
- He argued that investing in economic resilience can justify higher costs when vulnerabilities pose serious risks.
- Where
- At the Kautilya Economic Conclave
- When
- Saturday
- Why
- Disruptions can affect consumers through energy prices, shipping costs and broken supply chains, and may cause substantial economic and social harm.
Key facts
- Speaker
- PK Mishra, Principal Secretary to the Prime Minister
- Crude oil sources
- India expanded its import sources from 27 countries to 43.
- Resilience measures
- Strategic reserves, alternative suppliers, domestic capabilities and international partnerships
- Energy investments mentioned
- Renewable energy, nuclear power, storage and other technologies
- Manufacturing goal
- Domestic manufacturing should be competitive, scalable and eventually export-oriented.
- Key principle
- Resilience has to be accompanied by productivity.
Quotes
PK Mishra
Principal Secretary to the Prime Minister of India
“The world that is coming will belong to those who can be steady without being closed, careful without being fearful, and ambitious without being naive.”
financialexpress.com
“The question is whether that cost is justified by the consequences of the risk being insured against”
financialexpress.com
Sources
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