India The use of a new technology, called ‘e-commerce’, is gaining popularity as an alternative to China A significant shift has occurred in the dynamics of global manufacturing.

According A report published on Julye 9 by the International Trade Research Institute You can also check out the Korea International Trade Association (KITA), India’s Backward participation rates in the global Value Chain (GVC), which is a chain of value that runs from top to bottom, are rapidly increasing.

As In 2022, India’s GVC’s backward participation rate increased by 2.6 percentage points to 23.1% in 2015, from 20.5%. The The forward participation rate has increased by 0.4 percent points, indicating a lower growth rate. During The same period China’s Self-sufficiency of intermediate goods has increased dramatically, its forward participation rate increasing by 2.4 percentage point, while its backward participation only increased by 14%.

The The report highlights a significant shift of global manufacturing dynamics. India As a potential alternative, China. According KITA’s survey of 157 firms investing in India68.1% domestic companies forecasted that India Would replace China The word “as” is used to describe the. “factory of the world” Within five years. This The sentiment that drives us is India’s Increased integration in the global value chain, and strategic economic policies that aim to attract foreign investment.

Despite The growing need for entry into the Indian market, Korean companies’ expansion remains slow. When Comparing investment scales Korea’s The investment in the United States is one-seventh as much as that in Japan. According The economic analysis firm CEIC is a leading provider of economic analyses. Japan’s Investment in India Last year, the amount was approximately $3.1 billion. In Contrary to popular belief, the Export-Import Bank You can also find out more about the following: Korea, Korea’s Investing in India Last year, the amount of overseas direct investment was just $453 million. This represents only 0.7%.

India The government is expanding its foreign investment policy while simultaneously strengthening its protectionist measures, such as antidumping and mandatory certification. Bureau You can also find out more about the following: Indian Standards (BIS). These The measures that are in place for foreign investors present both opportunities as well as challenges. India.

Jo Eui-yoon, a KITA senior researcher, stressed the need to remove these barriers. “To secure a foothold in the Indian market, we need to alleviate the tariff and non-tariff barriers for our companies through the ongoing Korea-India Comprehensive Economic Partnership Agreement (CEPA) improvement negotiations,” He said.

The study highlights the importance of focusing on India As a base for global production. Amid Prime Minister Narendra Modi’s Third term, there is a call to support the domestic industry in expanding into India. Modi’s The economic reforms, initiatives and policies have played a pivotal role in positioning India As a viable alternative ChinaIn the face of rising labor prices and trade tensions, this is especially important. China’s Manufacturing industry

Understanding The terms “backward participation rate” You can also find out more about the following: “forward participation rate” It is important to consider the global value chains. These The concepts describe how countries participate as participants in international trade, either by importing intermediate goods and exporting them to other countries (forward participation) or by exporting intermediate products that they use in their exports. India’s The increasing rate of backward participation indicates that it is playing a growing role in global supply chains, making it a desirable destination for foreign investments.

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