A sharp policy focus on other GVC intensive “network products”, including equipment for IT hardware, electrical appliances, electronics and telecommunications, and automobiles would also provide the cutting edge to India’s export strategy with considerable scope for higher value additions. 22. Domestic policies need to focus on the right mix of local and foreign content in exports while aiming to enhance participation in GVCs.
Firms that engage in both imports and exports are found to be far more productive than non-trading firms (World Bank, 2020)4. While choosing trade partners through free trade agreements (FTAs), it is also important to learn from global experience and nurture those trade agreements that go beyond traditional market access issues.