ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Can Increasing Global EV Adoption Threaten India’s Growing Auto GVC Exports?

India’s impressive performance in automotive global value chains, due to stellar exports of traditional internal combustion engine intermediates and vehicles, is being challenged by the electric mobility revolution worldwide. This article delves into the challenges that India should overcome to feature in greener auto GVCs of the future.


India’s Trade Policy and GVCs

As we prepare to adopt the new trade policy, this article studies the trends in the global value chain participation of six sectors from Indian manufacturing with an emphasis on the nature of participation. It analyses the trends over the last few decades and connects them to the changes in the trade policy of the Indian government. It concludes by commenting on the viability of various policies to improve Indian competitiveness and employment over the medium term, cautioning that protectionism without improvement in productivity of the protected sectors (even as some GVCs get reorganised in a post-pandemic world) would prove counterproductive, thus puncturing India’s ambitions of becoming a manufacturing hub or creating quality employment for its workforce.


Is India Moving Up the Global Value Chain?

India’s participation in global value chains is investigated, focusing on its exports. Changes in stages of value chain participation for key export sectors are unravelled and its implications for India’s trade policy are commented on.

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