Raising India’s Global Value Chain Participation
Together with economic growth, India has steadily expanded its share in global value added, exports and foreign direct investment since 1991 (Gupta and Blum, 2018). Growth has been stable, diversified and largely resilient to domestic and external shocks. Strong growth helped India pull millions out of poverty, with the poverty rate declining from 47.6 percent in the mid-1990s to below 11 percent in 2017 (World Bank, 2020b). While domestic demand remains large, exports have emerged as an important contributor to growth, accounting for nearly a quarter of India’s growth from 2000 to 2020. Exports enabled more competition, faster technological progress, spillovers and economies of scale (Agrawal, 2015). India’s share in global exports has more than tripled, from 0.5 percent in 1990 to more than 1.7 percent in 2018 (Figure 36).