Abstract:

The phenomenon of Global Value chains (GVC) has experienced an expeditious rise over the past two decades. According to recent estimates, 80% of global trade can be categorized as GVC oriented trade. However, despite its ubiquitous nature, India has not been able to integrate itself into GVCs extensively. Consequently, it becomes essential to analyze the factors determining GVC participation of Indian manufacturing firms. In this seminar, we shed light upon two such factors. First, we examine the role of the firms' financial constraints in their decision to participate in GVCs. In this regard, we also examine the implications of these constraints with a special emphasis on small and medium firms (SMEs). Second, given the rising importance of services, we analyze the servicification of Indian manufacturing firms. In other words, we analyze the role of services provided by manufacturing firms in their endeavor to integrate into GVCs.