There's a pressing need to address resilience across global value chain ecosystem: Mallika Srinivasan

NewsDrum Desk
23 Jan 2023

Gandhinagar, Jan 23 (PTI) There is a pressing need to address resilience across the global value chain ecosystem, which has been impacted by the pandemic, geopolitical tensions and trade restrictions, Tractors and Farm Equipment Ltd Chairperson Mallika Srinivasan said on Monday.

Restrictive trade and investment policies have also impacted FDI activity and the global undercurrents are also having second order effects, leading to disrupted production, higher prices for consumers, limited consumer choices, misallocation of resources and loss of jobs, she said here at the at the Business-20 (B20) India inception meeting.

While investments have rebounded to post-pandemic level and governments around the world have been proactive in reshaping supply chains by offering attractive investment schemes for investors bringing a positive outlook, Srinivasan said there are some global trends that bring forth the need to build resilience in the global value chains as a priority.

"Bilateral trade tensions among major trading blocs have intensified, leading to an imposition of rising tariffs and sanctions. The outbreak of the recent military conflict led to a variety of restrictive measures, which significantly impacted global supply chains. We are now at a point where formal trade restrictions are estimated to impact USD 1.4 trillion of trade among G-20 countries," she said.

Restrictive trade and investment policies have also impacted FDI activity and these factors give rise to expectations that there is a significant shift, Srinivasan said, adding, the global undercurrents also have second order effects, leading to disrupted production, higher prices for consumers, limited consumer choices, misallocation of resources and loss of jobs.

"Hence there is indeed a pressing need for us to address the resilience across the ecosystem," she asserted.

However, Srinivasan said amid these developments, Asia, and India in particular, has emerged as a leading light globally while FDI inflows into developed economies dropped.

Last year India became one of the fastest growing countries in the world and completed the successful emergence out of a pandemic induced slowdown with a real GDP growth of 6.9 per cent "proving that a large country with a democratic pluralistic system can achieve significant economic growth and development for its people", she added.

With the country estimated to have become the most populous in the world, Srinivasan said, "India's ambitious foray into the global economy with this human capital and entrepreneurship has underlined its leadership among the emerging and developing economies." She further said, "The global focus on the India growth story is indicative of its growing importance in accelerating international development and cooperation and strengthening multilateralism." "As one of the most diverse nations in the world India appreciates that inclusivity is the key to growth and will play a strong role in driving resilience, sustainability, digitisation, and enhancing the services trade to name a few of the issues," Srinivasan asserted. PTI RR RKL HVA

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