Developing Countries & Global Production Networks: CII Summit

New Delhi, Dec 7 (PTI) Developing countries can leverage their resources and labour to integrate into global production networks, leading to increased employment and income levels, Sanjay Budhia, Chairman of CII National Committee on EXIM, said on Thursday.

He said that products and services are no longer created within the confines of one country, rather, they are a collaborative effort, involving multiple nations.

This interdependence highlights the importance of fostering international cooperation and trade agreements to ensure the smooth flow of goods and services.

"Participation in the global value chain provides countries with opportunities for economic growth. Developing countries, in particular, can leverage their resources and labour to integrate into global production networks, leading to increased employment and income levels," Budhia said.

He was speaking at the CII Global Economic Policy Summit's technical session on Building Resilient and Inclusive GVCs for Enhancing India's Exports.

However, he said that recent events like the COVID-19 pandemic have brought to the forefront the importance and need for a strong and diversified supply chain across countries.

"Too much reliance on few concentrated partners resulted in massive disruption in the value chain process. Disruptions in one part of the chain can have cascading effects on the entire network," he said, adding businesses and countries are now focusing on building more resilient value chains, diversifying suppliers, and adopting technologies that enhance adaptability in the face of unforeseen challenges.

Further, he said that countries and global firms are reducing their dependence on other traditional and legacy partners for their supplies and are diversifying businesses into India.

"India is en route to becoming a major manufacturing and export hub," Budhia, who is also the MD of Patton Group, said.