Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment
Q5. India’s integration with global value chains remains weak in mid-tech manufacturing. Examine structural causes. Assess the opportunities emerging from supply chain shifts post-pandemic. Recommend a comprehensive trade strategy. (15 M)
Difficulty Level: Medium
Reference: IE
Why the question
Global shifts in supply chains post-pandemic and rising protectionism have revived focus on India’s limited mid-tech manufacturing GVC integration, making the issue highly contemporary.Key demand of the question
The question demands an examination of structural barriers to GVC integration in India’s mid-tech sectors, an assessment of new global opportunities post-pandemic, and a recommendation of a comprehensive trade strategy.Structure of the Answer:
Introduction
Briefly mention India’s untapped mid-tech manufacturing potential amid evolving global supply chains.Body
- Structural causes: Discuss tariff structures, labour laws, logistics bottlenecks, R&D gaps, and FTA limitations.
- Opportunities post-pandemic: Highlight China +1, US tariff trends, ESG-driven sourcing, labour cost advantage, and Quad-linked initiatives.
- Comprehensive trade strategy: Suggest tariff correction, FTAs, logistics upgrades, labour reforms, and MSME clustering.
Conclusion
Emphasise the need for coordinated reforms to position India as a key GVC player in mid-tech sectors.
