Sensex Today Live: Global value chains the missing link in India’s growth story
The ICT revolution led to a surge in globalization that the world observed. The inception of the World Trade Organization in 1995 prompted countries worldwide to reduce tariffs and non-tariff barriers and implement policies to draw foreign direct investment. This progress enabled the development of global value chains (GVCs), which internationalized the fragmentation of production, thereby promoting economic growth, aiding in poverty alleviation, and creating jobs.
Global value chains have been a missing link in India’s growth story, and understanding their importance is crucial for the country’s economic development. As India continues to strive for growth and development, integrating into global value chains can provide numerous benefits, including increased trade, technology transfer, and access to new markets.
The recent trends in global value chains highlight the need for India to focus on enhancing its competitiveness and attracting foreign investment. By leveraging its strengths in sectors such as IT, pharmaceuticals, and manufacturing, India can position itself as a key player in global value chains and drive sustainable economic growth.
As the world economy becomes increasingly interconnected, India’s participation in global value chains will be essential for driving innovation, creating employment opportunities, and boosting overall economic development. By embracing the opportunities presented by global value chains, India can unlock its full potential and chart a path towards a more prosperous future.
