The intertwined nature of global value chains cannot be over-emphasized. Developments in global trade have dominated headlines over the last few years and become a key imperative for governments and businesses all over the world. Global value chains have played a key role in additional job creation in stimulating economic growth, and boosting investments, emphasizing the respective strengths of each participating economy.
Reflecting on the macro-trends seen in global trade and investment, one observes that in 2022 global trade of goods and services reached a record level of over $30 trillion in value, signaling resilient global demand and demonstrating that trade remains critical to the global economy as well as to human development. Trade in goods contributed nearly $25 trillion or 75%. While global services trade contributes only 25%, it has grown robustly at an increase of over 15% YoY, compared to an approximate 10% in global goods trade during the same period.
While the broader outlook is undoubtedly positive, there are some global trends that require resiliency to be built into global value chains as a key priority. The pandemic and geopolitical developments that had second-order effects in terms of higher prices for consumers, limited consumer choices, misallocation of international resources and loss of jobs, highlighting the pressing need to foster resilience across the ecosystem.
During the India’s G20 presidency, the Government of India along with the private sector is committed to create a more dynamic trade policy environment, to enable India and other developing economies to achieve their full potential. India appreciates that inclusivity is the key to growth and will continue to play a strong role in driving resilience, sustainability, digitization and enhancing services trade, as few of the key themes going forward.
As we embark upon this journey, I echo the sentiments and confidence of my fellow B20 industry leaders towards jointly realizing our strategic vision for India and the world through concrete progress across the ecosystem – climate action, food security, innovation, digital cooperation, financial inclusion, and empowerment of the global south.
This article was contributed by Mrs Mallika Srinivasan, Chairman and Managing Director, Tractors and Farm Equipment Limited and Chair, B20 India Task Force on Inclusive Global Value Chains for Resilient Global Trade and Investment.
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