Stories
Deloitte India: GVC Integration, Supply Chain Resilience, FTAs Crucial for Export Boost
- •Deloitte India emphasizes that integrating into global value chains (GVCs), strengthening supply chain resilience, and utilizing free trade agreements (FTAs) are vital for boosting India's exports and high-end manufacturing.
- •Anil Talreja, Partner, Deloitte India, highlights the need to reduce logistics costs through multimodal export corridors, focusing on infrastructure and end-to-end supply chain efficiency, including port handling, transportation, and last-mile logistics.
- •Deloitte suggests establishing a 'Response Cell' to monitor and analyze changes in international standards, carbon-border adjustment measures (CBAM), product regulations, and other emerging trade requirements.
- •India's export-led manufacturing must shift towards technology, value addition, and deeper GVC integration, focusing on high-potential sectors like electronics, semiconductors, pharmaceuticals, and clean technologies.
- •The report calls for assessing and reducing vulnerabilities in critical supply chains, aligning FTAs with industrial strategy, rationalizing tariff structures, and supporting MSMEs with compliance and access to affordable trade finance.
Key Questions Answered
Deloitte India emphasizes deepening integration into global value chains (GVCs), strengthening supply chain resilience, and effectively utilizing free trade agreements to boost exports and high-end manufacturing. They also recommend reducing logistics costs through multimodal export corridors and streamlining end-to-end supply chain efficiency.
MSMEs face significant challenges in securing pre- and post-shipment credit due to limited collateral, credit history, and export track records, which lead to higher financing costs. Additionally, high exposure to long payment cycles and fluctuating currency exchange rates can adversely affect their cash flows, pricing competitiveness, and overall profitability.
India's next phase of export-led manufacturing should focus on high-potential sectors such as electronics and semiconductors, pharmaceuticals, capital goods, defence and aerospace, speciality chemicals, and clean technologies.
