New Delhi: Global value chains are undergoing a structural transformation, according to the joint report “Evolving Landscape of Global Value Chains” by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Boston Consulting Group (BCG).
For decades, globalization and integrated supply networks steadily reduced costs, making industries such as automobiles, renewables, chemicals, and pharmaceuticals cost competitive. However, this advantage is now under strain. Successive shocks from pandemic disruptions, climate events, and stricter sustainability requirements have revealed the vulnerability of hyper-optimized networks. As a result, companies can no longer rely solely on efficiency and scale; they must design value chains that are diversified, digitally enabled, and compliant with evolving global standards.
Commenting on this shift, Rahul Jain, Managing Director and Senior Partner at BCG, says, “The new rules of trade are reshaping value chains shifting from cost-only to multi-variable design, single-country hubs to regional blocs, reactive exports to agile trade hubs, and paper compliance to digital traceability.”
Building on this, the report notes that these changes bring both opportunities and risks. Companies face rising costs and stricter compliance thresholds, but those that embrace digital visibility, resilient regional structures, and verifiable standards can strengthen global trust and capture long-term growth.
Highlighting India’s role, Abhishek Bhatia, Managing Director and Partner at BCG, says, “India has a unique opportunity to deepen its integration into global trade networks. By strengthening domestic capacity, leveraging FTAs, and investing in innovation, India can position itself as a trusted hub in the evolving value chain landscape.”
Reflecting on the report, Ms. Jyoti Vij, Director General, FICCI, says, “The evolution of global value chains is both a challenge and an opportunity. With the right balance of efficiency, resilience, and sustainability, India can play a central role in shaping the future of trade.”