India's Integration into Global Value Chains : Challenges and Opportunities for Achieving Viksit Bharat 2047

Abstract

ABSTRACT

India stands at a critical turning point in its economic history. The vision of Viksit Bharat 2047 a developed India by the centenary of independence is not simply a political aspiration; it represents a measurable target that demands deep structural transformation of the Indian economy. Central to this transformation is the question of how India positions itself within global value chains (GVCs) those complex, cross-border networks through which goods are designed, produced, assembled, and delivered to final consumers.

This research examines India's current position in GVCs, the factors limiting deeper integration, and the pathways through which India can move from being a low-value raw material and assembly-stage participant to a high-value, knowledge-intensive contributor. Drawing on data from the World Bank, UNCTAD, OECD Trade in Value Added (TiVA) database, and India's own Ministry of Commerce and Industry reports, this paper identifies four core sectors electronics, pharmaceuticals, textiles, and digital services as pivotal battlegrounds for India's GVC ambitions.

The research develops an AI-assisted diagnostic model that maps India's GVC readiness across five dimensions: infrastructure quality, regulatory environment, labour skill levels, technological adoption, and trade logistics performance. Findings indicate that while India holds genuine competitive advantages in services and pharmaceuticals, it continues to lag in electronics manufacturing and logistics two areas where China and Vietnam have built commanding positions over two decades.

The paper argues that India's GVC integration cannot be achieved through policy statements alone. It requires sustained investment in people, infrastructure, and governance reform. Without coherent action across these dimensions, the Viksit Bharat 2047 goal risks remaining aspirational rather than achievable.