Answer to Question #110441 in Macroeconomics for Tabitha

Question

Greater integration of domestic industries with global production network (GPN) must form an essential part in the make in India initiative. Discuss.

Answer 1

The analysis reveals that India has so far failed fitting into global production networks in electronics and electrical goods, which have been the prime movers of export dynamism in China and the other high‐performing East Asian countries. The findings of this study provide further support to the case for completing the unfinished reform agenda, encompassing both trade and investment policy reforms, and “behind‐the‐border” reforms. There is also a strong case, based on the experiences in East Asia and elsewhere, for combining further reforms with a proactive investment promotion campaign to attract multinational enterprises engaged in global production networks.