This article published in the editorial section of The Hindu Newspaper explains how global supply chains are moving from a focus on efficiency to resilience, and now to security. Countries are more concerned about keeping their supply chains safe from outside threats like hacking and spying. India, like other countries, is working on ways to secure its supply chains while staying flexible. talks about big changes in how countries are managing their global supply chains, which is how products are made, moved, and sold around the world.

What are supply chains?

Supply chains are systems where products are made from parts that come from different places and are put together in different countries. For many years, businesses focused on making supply chains very efficient, which means making products quickly and cheaply. This was called the “just in time” approach. In this system, companies didn’t keep extra supplies or parts but instead got them only when they were needed.

How the pandemic changed things

When the COVID-19 pandemic hit, countries realized that relying too much on global supply chains could be risky. The pandemic caused many delays and shortages. So, countries began to focus on “just in case” thinking. This means being prepared for unexpected problems by making supply chains more resilient, or strong, in case something goes wrong. Instead of always trying to be the fastest and cheapest, they started to make sure they had backups and extra supplies to avoid problems if something bad happens.

New focus on security

Now, in September 2024, there’s another big change. Two events happened that made countries think even more about protecting their supply chains from danger.

1. The U.S. and vehicle systems: The U.S. government proposed new rules on September 23, 2024. These rules would stop certain types of connected vehicle systems (like self-driving or smart cars) from being sold in the U.S. if they were made by companies connected to China or Russia. The U.S. is worried that these vehicles could be used for spying. The sensors and cameras in these cars could collect information, or the cars could be controlled by hackers during a conflict. Because of these risks, the U.S. wants to block these products to stay safe.
2. Israel’s pager attack: Another event was an attack in Israel on September 17-18, where basic devices like pagers and walkie-talkies were targeted in Lebanon. These simple devices, which are old technology, were hacked and caused explosions that killed more than 30 people. This event showed that even old or basic technology could be dangerous if misused. It made people worry about the safety of advanced technology in everyday products.

These two events have made the world even more focused on supply chain security. Countries like the U.S., Australia, Japan, and India have already been limiting technology from China, such as blocking Chinese telecom companies like Huawei from building their 5G networks because they feared China could use the technology for spying.

A bigger shift: From efficiency to resilience to security

Before, supply chains were all about efficiency. Companies built complex supply chains that spread across the world to make products cheaply and quickly. China became a key part of this system, supplying many of the parts needed for various products.

However, after the U.S.-China rivalry heated up and the pandemic hit, countries realized they were too dependent on Chinese products. So, they began to focus on resilience, meaning they tried to make their supply chains stronger by spreading out suppliers and not relying too much on one country.

But now, security has become the main concern. Countries want to make sure their supply chains are not only strong but also protected from risks like spying, hacking, or sabotage.

What India can do

India is also thinking about how to protect its supply chains. The article suggests that India should not completely block all imports or fully depend on the “just in case” strategy of having extra supplies. Instead, India should use a balanced approach:

1. Trust but verify: For important technologies, like communications and transportation, India should allow imports but keep a close eye on them. This means checking products regularly, doing audits, and making sure they follow safety standards.
2. Zero trust: For highly critical technologies, like those used by the military or in research, India should assume that everything could be compromised. These products should go through strict security checks and constant monitoring to prevent any risk.
3. Diversify suppliers: For less critical technologies, India can continue with the “just in case” strategy by having multiple suppliers from different friendly countries. This way, if one supplier fails or there’s a problem, others can step in and keep the supply chain running smoothly.

In summary, this article explains how global supply chains are moving from a focus on efficiency to resilience, and now to security. Countries are more concerned about keeping their supply chains safe from outside threats like hacking and spying. India, like other countries, is working on ways to secure its supply chains while staying flexible.