Global value chains are currently witnessing profound changes and substantive transformations. It is the end-to-end processes, including raw material extraction to processing, localised production to globalized flows that are experiencing a new paradigm for further industrial development and investment strategies based on key external factors.
While the emergence of global value chains has been uneven, with a select number of economies spearheading the supply of intermediary parts and components to its final product, India’s participation is rightly positioned at this time as an opportunity to integrate and reshape its influence as a key player in global value chains. It is, therefore, essential to understand India’s key strengths and limitations to scale our advancements.
The outbreak of the COVID-19 pandemic has spurred several countries like Japan, South Korea to diversify their supply chain and reshape its global value in the new normal phase. Increasing number of companies are looking at strategically placing their manufacturing units partially or even considering new investments in other countries based on resources.
India shares a unique relationship with countries in the East Asia region. While the existing economic partnership already encompasses cooperation in critical sectors, there is a huge opportunity to explore synergies in new areas. India’s diversified supply chain and innovative vision makes it a strong upcoming manufacturing powerhouse in Asia. It offers a viable option for Global Manufacturing Value Chains of the economies of East Asia region. The East Asia thematic session on ‘Future of Global Manufacturing Partnerships with India’ at LEADS 2021 would attempt to deliberate on leadership vision on manufacturing excellence backed by path-breaking reforms to encourage integration with global value chains, providing an opportunity to the world to reimagine their future manufacturing partnerships with India.
The author is Secretary General, FICCI
**This blog is a part of the ‘FICCI LEADS 2021: Reimagine the World’ series.