The report titled ‘Rewiring GVCs in a Changing Global Economy’ is a joint publication of Asian Development Bank (ADB), WTO, World Economic Forum etc.
- GVCs refers to a production sequence for a final consumer good, with each stage adding value and at least 2 stages taking place in different countries.
Key Highlights of the Report
- Globalization Rewiring, Not Reversal: Due to factors like technological change, green transition and shifting geopolitical conditions, showing resilience of GVCs.
- Global Share of GVC in trade is 46.3%, declining marginally from 2022 peak of 48%.
- Rise of services and Digital trade: Services surpassed goods in GVC participation, accounting for more than one-third of the value added in manufacturing exports.
- India strengthened its integration in GVCs due to its robust growth in digital services exports.
- Dominance of Regional Hubs: Asia, Europe, and North America account for majority of GVC trade while, Latin America and Africa lag in GVC and trade integration.
- Emerging trends:
- Reshoring in China, US, EU reduced their dependence on foreign value addition.
- Diversification of manufacturing despite China’s dominance. E.g. China accounts for 76.9% of global EV production.
- India: Among top 10 value adding economies and accounts for 2.8% of global domestic value added in exports (2024).
Significance of GVCs
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