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).