![How to make in India–and protect economy from supply shocks](https://images.livemint.com/img/2022/08/28/1600x900/LSpic_1661707268528_1661707274362_1661707274362.jpg)
How to make in India–and protect economy from supply shocks
Live MintNEW DELHI : With the global decline in commodity prices in the last few weeks, domestic inflation rates have begun to ease as well. As the authors of a recent Reserve Bank of India paper note: “The covid-19 pandemic has delivered the biggest and broadest shock to global value chains in living memory, putting at risk trade in intermediate goods that account for two-thirds of global exports." Backward, forward linkages In more traditional and older models of trade, based on so-called comparative advantage, the idea of a ‘value chain’, whereby country A sold a good to country B, which processed it and sold it to country C and so on, was virtually unknown. Quantifying connections Measuring the extent to which a country like India participates in the global value chain is complex. By this metric, the share of Indian manufacturing trade, whether exports or imports, that is part of a global value chain, has risen from around 30% in the early-1990s by a few percentage points.
History of this topic
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Hindustan Times![Downhill driving: The Hindu Editorial on India’s overall trend of exports](https://www.thehindu.com/theme/images/og-image.png)
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The Hindu![India is making its mark in the world](https://www.hindustantimes.com/ht-img/img/2023/05/30/1600x900/India-s-economy-is-no-longer-at-the-receiving-end-_1685452006934.jpg)
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Hindustan Times![India among countries to benefit from supply-chain changes: World Economic Forum survey](https://images.firstpost.com/uploads/2023/01/World-Economic-Forum1-1.jpg?im=FitAndFill=(1200,675))
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Deccan Chronicle![Explained: Why India's economy needs a manufacturing push](https://akm-img-a-in.tosshub.com/indiatoday/images/story/202108/India_manufacturing_1200x768.png)
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