In recent years, the global landscape of tech manufacturing has undergone significant shifts, driven in part by the COVID-19 pandemic. This crisis accelerated trends towards self-sufficiency and reduced dependence on complex global supply chains. However, India, despite its potential, remains largely absent from the global value chain (GVC) due to critical shortcomings.
One of the primary obstacles hindering India’s integration into the GVC is its inefficient export-import clearance processes. According to Mithileshwar Thakur from the Ministry of Commerce and Industry, India struggles to meet the rapid clearance requirements essential for just-in-time production and seamless supply chains. This lack of agility severely impacts India’s ability to participate effectively in multinational production networks.
Transitioning to a streamlined national trade network for online export compliance could alleviate these challenges. Such a system would consolidate bureaucratic procedures, allowing exporters to manage compliance centrally rather than navigating multiple agencies and authorities, thereby reducing delays and inefficiencies.
Another critical issue highlighted by Yaduvendra Mathur of Consulting Engineers Group Ltd is India’s inconsistent adherence to global manufacturing standards. While India excels in sectors like two-wheelers and electric vehicles for the domestic market, products often fall short of international benchmarks necessary for integration into the GVC. This reluctance to meet global standards limits India’s competitiveness and attractiveness as a partner in international manufacturing collaborations.
To address this, stakeholders must prioritize standardization alongside discussions of tariffs and logistics. Encouraging Indian companies to align with global quality benchmarks will not only enhance their export potential but also position them as reliable partners in the global tech manufacturing ecosystem.
Moving forward, Thakur suggests that India’s policy framework should encompass the entire GVC smiling curve, focusing on enhancing capabilities in R&D, system design, and manufacturing processes. By leveraging existing strengths and bridging critical gaps in infrastructure and policy, India can better position itself as a significant player in global tech manufacturing.
In conclusion, while challenges persist, India holds immense promise in the tech manufacturing sector. By addressing export-import bottlenecks, prioritizing standardization, and aligning policies with global trends, India can pave the way for sustainable growth and integration into the global value chain. With concerted efforts from both public and private sectors, India has the potential to emerge as a powerhouse in global tech manufacturing in the coming years.
