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.


Global Value Chains of MNCs and Indian SMEs

The rapidly expanding global value chains of multinational corporations are increasingly dominating international trade, which emerging economies like India can hardly afford to ignore. The limited presence of Indian small and medium enterprises in the GVCs of MNCs can be traced back to a negligible share of internationalised SMEs, which is primarily due to a weak innovation base, owing to weak networks of SMEs, particularly weak inter-firm linkages. These issues can be overcome by building and strengthening regional innovation systems and by establishing a multipurpose science and technology commission in the clusters of SMEs.


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