Panel Discussion - Release of World Bank's World Development Report 2020
Posted on: 2020-01-25 12:26:00
Trading for development in the Age of Global Value Chains
The panel discussion held by the World Trade Center was to know about trading in the age of global value chains. The World Bank's World Development Report 2020 was also discussed. The panel had prominent speakers such as
Dr. Aaditya Mattoo, Chief Economist, East Asia and Pacific Region, World Bank
Mr. PD Singh, MD at JP Morgan
Mr. Siddharth Rastogi, MD at Ambit Capital Pvt. Ltd.
Mr. Vijay Kalantri, Vice Chairman at World Trade Centre, Mumbai
Ms. Rupa Nair, Senior Director at World Trade Centre, Mumbai
India has both underachieved and overachieved in Global Value Chains. It has failed to take advantage in participation in the first transaction from commodities to simple manufacturing, eg cloth for clothes, leather for shoes. That is the transition that provides the biggest boost in terms of creating growth and jobs. This has not been done by India.
A country like India can shape the Global Environment through its constructive participation. We cannot rely on services alone. We need a revival of basic manufacturing in which small and medium enterprises participate in order to generate jobs which have transformed places like China.
GVC firms are more productive than one way.
Income grows most when countries break into simple manufacturing.
GVC firms are more capital intensive but also see faster employment growth.
How India can increase its share in global value chains?
Reduce tariff and nontariff barriers especially in agriculture and services.