Emergence of international production networks or Global Value Chains (GVCs) is one of the most remarkable features of international trade during last few decades. The spectacular success of Asian tiger economies is built around the GVCs in many sectors such as apparel, electronics, footwear, consumer durables etc. It is estimated that GVCs account for almost 75% of global trade today.
With its deep manufacturing base, India can also lead in various value chains. However, partly due to focusing on large domestic market and partly having weak supply chains, India- led value chains have not yet taken root.
With technical support of the Commonwealth under aegis of project on ‘Integrating LDCs in India’s Global Value Chains’, a detailed study by Trade Competitiveness Section (Commonwealth Secretariat) has identified scores of lead products where India can form its own Global Value Chains. Further, besides local SMEs, these India led value chains also present good potential for SMEs from LDCs who can link-up in these production network expanding market access for the value chains and thus create a ‘win-win’.
To facilitate linkage of potential SME suppliers to these value chains, India’s Commonwealth SME Association is launched on 30th June 2016 in New Delhi. The association is a joint initiative of CII, FICCI and FISME and is being supported by the Commonwealth and Government of India.
The key objectives of the associations are: