Global value chains (GVCs) are under transition.
Three pre-pandemic megatrends were already
driving this shift: emerging technologies; climate
change and the imperative of environmental
sustainability; and the reconfiguration of
globalization, with COVID-19 acting as a major
accelerator. As global companies adapt their
manufacturing and supply chain strategies to build
resilience, a window of opportunity has opened
for new destinations to emerge as a manufacturing
locations of choice.
India is a prime candidate to capitalize on this
opportunity. In its favour are the potential for
significant domestic demand, its Government’s
drive to encourage manufacturing and a distinct
demographic edge. At the same time, the country
is under pressure to catalyse its manufacturing
sector to create jobs for a rapidly growing working-age
population, distribute economic growth more
equitably and contain a burgeoning trade deficit.

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