NDTV News

NDTV.com provides latest news from India and the world. Get today’s news headlines from Business, Technology, Bollywood, Cricket, videos, photos, live news coverage and exclusive breaking news from India.

https://www.ndtv.com/

Joe Biden Cites India, Brazil To Explain Complexity Of Global Supply Chain.

Joe Biden Cites India, Brazil To Explain Complexity Of Global Supply Chain
Washington:

As new data showed that inflation in the US jumped to a 31-year high in October due to supply shortages, President Joe Biden cited India and Brazil to explain the complexity of the global supply chain and said that it has been hit particularly hard by the COVID-19 pandemic.

Speaking in Baltimore, Biden said as long as goods and materials are reaching where they need to reach in time, there's usually no need to worry about the supply chains.

The COVID-19 pandemic has stretched global supply chains like never before. "And suddenly, when you go to order a pair of sneakers or a bicycle or Christmas presents for the family, you''re met with higher prices and long delays," the president said.

"In simple terms, the supply chain is just the journey a product takes to get to your doorstep. Raw materials plus labour, assembly, shipping, everything it takes to create the finished product," he said.

Biden further said, "These supply chains are complex, even products as simple as a pencil. Going to have to use wood from Brazil, graphite from India before it comes together at a factory in the United States to get a pencil. Sounds silly, but that''s literally how it (is)...

"So, all of a sudden you got the Covid crisis in Brazil. You can''t get the product made because the plant shut down. That''s what''s happening," he said.

"Products like smartphones often bring together parts from France, Italy, chips from the Netherlands, touchscreens from New York state, camera components from Japan, the supply chain that crosses dozens of countries. That''s just the nature of the modern economy, the world economy," he added.

According to government data, consumer prices in the US rose 6.2 per cent in October from a year ago, the sharpest increase since 1990.

The data comes days after a USD 1 trillion infrastructure bill cleared Congress that the president has said will create jobs and help cool inflation.

The global supply chains have helped dramatically bring down the price "we pay for things we buy". But they have also made them much more dependent on what happens in other parts of the world. So, if a factory in Malaysia shuts down due to a Covid outbreak, which they have, it causes a ripple effect that can slow down auto manufacturing in Detroit, Biden said.

"Why? It can''t get the computer chips they need. If a climate disaster closed a port in China, it can delay shipment of furniture or clothing, reduce worldwide supply and drive up prices here in America. And the irony is people have more money now," he added.

Biden said his administration will modernise ports, airports and freight rail to make it easier for companies to get their goods to market, reduce supply chain bottlenecks and lower the cost for working families.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Related news

Russia Fines Google For Not Deleting Banned Content.

A Moscow court fined Alphabet Inc.'s Google 3 million roubles ($40,400) on Monday for not deleting content that it deemed illegal, part of a wider dispute between Russia and the U.S. tech giant.

NDTV News

Nightly News Full Broadcast - November 27th

Nightly News Full Broadcast - November 27th

European countries report cases of Omicron Covid variant, breaking down why health officials are so worried about Omicron variant, and Black Friday deals impacted by supply chain crisis. » Subscribe to NBC News: » Watch more NBC video: NBC News Di...

Judge Jeanine: Leftist DAs and legislatures are endangering America.

Judge Jeanine: Leftist DAs and legislatures are endangering America.

'Justice with Judge Jeanine' host demands answers after the deadly Christmas parade tragedy #FoxNews #JudgeJeanine Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompassing ...

Biden should step down: Tyrus

Biden should step down: Tyrus

'The Big Saturday Show's' co-hosts debunk 'The View's' praise of Biden by explaining the impact of his policies. #FoxNews #TheBigSaturdayShow Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is ...

I would give Biden a grade worse than F: GOP congressman.

I would give Biden a grade worse than F: GOP congressman.

Missouri Republican Jason Smith weighs in as pressure builds on Biden to bring down inflation #FoxNews Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompassing news service...

Who is Ghislaine Maxwell and how did she know Epstein?.

Who is Ghislaine Maxwell and how did she know Epstein?.

British socialite Ghislaine Maxwell is the 9th daughter of the disgraced former media mogul, Robert Maxwell. The former girlfriend of paedophile Jeffrey Epstein is facing charges of sex trafficking and is accused of procuring teenage girls for Mr ...

Passengers arriving from SA react to quarantine policies.

Passengers arriving from SA react to quarantine policies.

Spreading cases of the Omicron variant of coronavirus are linked to travel from South Africa. Early signs suggest that the new strain may spread as fast or faster than Delta. Face coverings will become compulsory in shops and on public transport f...