GVC integration, supply chain resilience, FTAs key to boost exports, high-end manufacturing: Deloitte India
India needs deeper integration into global value chains, lower logistics costs and better use of free trade agreements to boost exports and move into higher-value manufacturing, according to Deloitte India. It also called for stronger supply-chain resilience, tariff rationalisation and greater support for MSMEs facing trade-finance, compliance and currency risks.
Deloitte India highlighted three crucial factors - integration into global value chains, supply chain resilience, and utilization of free trade agreements - to enhance India's exports and high-end manufacturing sector. Anil Talreja, a Deloitte India partner, emphasized reducing logistics costs through multimodal export corridors by improving end-to-end supply chain efficiency, not just infrastructure development.
He proposed establishing a Response Cell to monitor and analyze changes in standards, carbon border adjustment measures, product regulations, sustainability, traceability, sanctions, and other trade-related requirements. The next phase of export-led manufacturing should shift from scale and assembly to technology, value addition, and deeper GVC integration, focusing on sectors like electronics, pharmaceuticals, capital goods, defense, aerospace, specialty chemicals, and clean technologies.
Deloitte India also recommended assessing vulnerabilities in critical supply chains, reducing dependence on key inputs, supplier concentration, and geopolitical risks through alternative suppliers, technology partnerships, domestic production, and strategic reserves. The firm suggested aligning FTAs with India's industrial strategy to attract investment, develop manufacturing ecosystems, and widen export opportunities.
For MSMEs, the government should aid them in complying with rules of origin, standards, and documentation to maximize the benefits of preferential tariffs under FTAs. MSMEs account for nearly half of India's total exports and 45% of manufacturing output. Deloitte India also addressed the challenges MSMEs face, such as access to affordable trade finance, long export payment cycles, and high exposure to payment and currency risks.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
