Gandhinagar, Jan 23 (PTI) Promoting regional trading arrangements is a possible way to strengthen global value chains and the B20 should focus on strengthening these arrangements, Blue Star Ltd Vice Chairman and Managing Director Vir S Advani said here on Monday.
Global Value Chains (GVCs), he said, are one of the key drivers for sustainable growth and development of an economy.
He added that GVCs are considered to be a powerful driver of productivity, growth, job creation, and increased living standards.
Currently, these chains are much deeper in some industries where activities can be more easily separated and fragmented, such as electronics, automotive or garments, Advani said.
"We need to think of policies to make global supply chains resilient. We have experienced the case of semiconductors during COVID-19 and many more such sectors and products were affected. The issue of mobility restrictions and various government policies affected the networks of complex production-sharing.
"Therefore, we must look for structures, processes and technologies which are resilient for businesses. Promoting Regional Trading Arrangements (RTAs) is a possible way to strengthen GVCs. I believe that the B20 should focus on strengthening these RTAs," he said.
Advani also said that a radical shift is happening in GVCs as they are increasingly moving beyond traditional manufacturing processes to services and other intangible assets.
"My recommendation is that the B20 work quickly to update trade policy to reflect this new reality," he said.
He was speaking at a session at the B20 India Inception meeting here, which was organised by industry chamber CII.
As India holds the presidency of G20 in 2023, it will host the 18th G20 Summit in September. The Business 20 (B20) is amongst the most prominent official engagement groups in G20, with companies, business associations and multilateral organisations as participants.
The G20 or Group of 20 is an intergovernmental forum of the world's major developed and developing economies. It comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the European Union (EU). PTI RR SHW