Indiaʼs Integration Into Global Value Chains: Policy Approaches to Growth and Industrial Upgrading

ABSTRACT Indiaʼs potential in global exports remains largely untapped, particularly in backward‐linked global value chains (GVCs). Deeper integration—especially through regional blocs like ASEAN and RCEP—is crucial. India can leverage these regionsʼ strength in parts and components while using its assembly capabilities as an entry point. This approach can drive value chain upgrading through scale and ecosystem development. Realising this potential requires reducing tariffs on key inputs, strengthening trade and FDI ties with regional partners, and attracting MNEs that facilitate GVC integration. Regional trade agreements should act as stepping stones towards broader multilateral liberalisation. Equally important are domestic reforms: easing non‐tariff barriers, simplifying rules of origin, improving infrastructure, and enhancing inter‐agency coordination. Without such complementary efforts, India risks remaining at the periphery of GVCs despite signing more trade deals. A coordinated strategy—combining external engagement with internal reform—is essential to unlock sustained, export‐led growth and enhance Indiaʼs global competitiveness.