Global value chains the missing link in India’s growth story | Mint

Global value chains the missing link in India’s growth story | Mint

The globalization process has led to advancements in technology, allowing countries to reduce trade barriers and attract foreign investment. However, India's manufacturing sector still remains untapped compared to other emerging economies, leading to low merchandise exports and per-capita income. The country needs to reevaluate its trade policies to integrate into global value chains and attract investments, especially in the semiconductor industry.

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FAQs - Global value chains the missing link in India’s growth story | Mint

Frequently Asked Questions:

  1. What is the role of global value chains (GVCs) in India's growth story?Global value chains are crucial for India's growth as they offer opportunities for integration into the worldwide market. By becoming part of GVCs, India can enhance its export potential and manufacturing capabilities.
  2. How much does India contribute to global merchandise exports?As of the information available, India contributes only about 2% to global merchandise exports, which suggests there is potential for significant growth.
  3. What is India's current status in the global economy, especially among BRICS nations?India is considered one of the leading emerging economies among the BRICS countries, which include Brazil, Russia, India, China, and South Africa. These countries were seen as the major growing economies in the early 2000s.
  4. Is India a key hub for international companies and their global strategies?Yes, India is emerging as an important hub for international companies. For example, India is a strategic player in GE HealthCare’s global strategy, focusing on supply chain, software development, and product development.
  5. What efforts are being made to integrate India into global value chains?The Indian government has initiated steps such as the Gati Shakti program which aims to enhance connectivity and infrastructure to better enable India to be a part of global value chains.
  6. How can Indian SMEs (Small and Medium-sized Enterprises) benefit from global value chains?Indian SMEs can benefit by adopting international best practices, increasing their competitiveness, and gaining access to wider markets through integration into GVCs.
  7. What are the challenges India faces in integrating with global value chains?India faces challenges such as infrastructural bottlenecks, regulatory complexities, and the need for better quality control to meet international standards, which can impede full integration into GVCs.
  8. What impact can the integration into global value chains have on India's economy?Successful integration into GVCs can lead to greater economic growth, industrial diversification, increased employment, and improved technological capabilities for India.
  9. Are there any specific sectors in which India is focusing to integrate with global value chains?It is not specified in the provided search results which particular sectors are being targeted. However, sectors typically involved in GVCs include manufacturing, IT services, pharmaceuticals, and automotive.
  10. What measures is India taking to attract foreign investment and enhance its role in global value chains?India is implementing policy reforms, improving its infrastructure, and promoting ease of doing business to attract foreign investments and increase its participation in global value chains.

Please note that the answers are based on the information available in the provided search results, and should more current or detailed information be needed, a direct search into the latest reports and articles would be required.