Supply-Chain Resilience
"Friend-shoring," "China+1" and Diversification Strategy
Supply-chain resilience refers to a trade and industrial-policy shift, accelerated after COVID-19 disruptions (2020-21) and geopolitical shocks (Russia-Ukraine conflict, West Asia tensions), away from efficiency-maximising single-source/single-country supply chains toward diversified, redundant, and geopolitically aligned sourcing.
- "China+1" strategy: firms diversify manufacturing/sourcing to at least one additional country beyond China, to reduce over-concentration risk; India, Vietnam, and Mexico have been key beneficiaries.
- "Friend-shoring" (a term popularised around 2022 by the US Treasury): relocating supply chains to countries considered geopolitically aligned or trusted partners, rather than purely on cost grounds.
- India's Production-Linked Incentive (PLI) scheme (launched 2020, extended across 14 sectors) is India's domestic policy instrument to attract manufacturing investment amid this global supply-chain reconfiguration.
- The concept differs from "protectionism": resilience-focused diversification still involves open, multi-country trade — it seeks redundancy and reduced concentration risk, not self-sufficiency in isolation.
● Tracked since March 03, 2026 · last seen September 11, 2026 · updates as the daily brief publishes
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