What's New :
UPSC CSE Result 2023.Download toppers list

Need of India to reintegrate into Global Value Chain

  • Published
    8th Nov, 2023

NITI Ayog CEO re-emphasised on India’s need to reintegrate into Global Value Chains.

What are Global Value Chains?

  • Global Value Chains (GVCs) represent the intricate networks of international production in which different stages of the production process for goods and services are carried out across various countries.
  • These chains involve multiple firms and suppliers worldwide, each contributing different value-added components or tasks to create a final product or service.

Why is integration with GVCs important?

  • Economic Growth: GVCs offer opportunities for countries to participate in global trade and production networks, promoting economic growth by leveraging their unique strengths in the production process.
  • Efficiency and Specialization: It allows each country to specialize in specific tasks, focusing on what they do best. This specialization leads to higher efficiency and better-quality products.
  • Access to Markets: Participation in GVCs provides access to global markets, allowing countries to sell their products and services worldwide, thereby expanding their customer base.
  • Technological Advancements: Integration into GVCs often brings access to new technologies and knowledge transfer, fostering innovation and development within industries.
  • Job Creation: GVCs create job opportunities within participating countries, especially in sectors where they have a competitive advantage, leading to increased employment and economic stability.
  • Economic Resilience: Diversification through GVCs helps nations to reduce risks associated with over-reliance on a single industry or market, making their economies more resilient.


  • Infrastructure Deficiency: Inadequate infrastructure in transportation, logistics, and technology hampers efficient connectivity and integration within global trade networks.
  • Complex Regulatory Environment: Cumbersome and complex regulations, bureaucratic red tape, and unclear policies create barriers and hinder the ease of doing business within GVCs.
  • Skilled Labor Shortage: The need for skilled and technologically adept labor often outstrips the available workforce, affecting the country's competitive edge in certain sectors.
  • Limited Access to Finance: Insufficient access to capital and financing options for businesses, especially smaller enterprises, impedes their ability to invest and grow within GVCs.
  • Low Research and Development Investment: Limited R&D investment and innovation hinder the country's ability to develop and incorporate advanced technologies into production processes.
  • Environmental and Ethical Concerns: Compliance with environmental and ethical standards poses challenges for some industries, impacting their participation in certain segments of GVCs.
GS Mains Classes GS Classes 2024 UPSC Study Material

Verifying, please be patient.

Enquire Now