India emerging as key beneficiary of global supply chain shifts: FICCI-BCG report

India’s transformation is being driven by PLI schemes attracting $20 billion in investments and $191 billion in output, alongside new trade deals like the India–UK FTA and India–EU agreement potentially unlocking $668 billion in market access

As global trade undergoes a major transformation, India is emerging as one of its most significant beneficiaries. A new report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Boston Consulting Group (BCG) highlights how structural changes in global supply chains are reshaping trade dynamics—and positioning India for long-term gains.

The report, titled “Evolving Landscape of Global Value Chains,” identifies a global shift from cost- and scale-driven models to more resilient, flexible, and compliance-focused trade ecosystems. With countries reducing over-reliance on single-nation suppliers—particularly China—India is gaining momentum in the race to become a preferred alternative.

One striking example: the $150 billion decline in U.S. imports from China has led to $23 billion in new exports from India, the report notes.

Policy support and trade corridors driving growth

At the heart of this transformation is the Indian government’s Production-Linked Incentive (PLI) scheme, which has already attracted over $20 billion in investments and driven $191 billion in output across sectors like electronics, pharma, and IT.

In addition, India is aggressively pursuing new trade partnerships. The proposed India–UK Free Trade Agreement could give Indian exporters access to a $98 billion market, while a potential India–EU trade deal, expected by 2025, could open doors to $570 billion in trade flows.

“India has a real opportunity to move from being just a participant in global supply chains to becoming a critical enabler,” said Jyoti Vij, Director General at FICCI. “But it will require us to align growth with sustainability, agility, and digital capabilities.”

Building resilience and reducing import dependency

Despite the progress, the report also highlights key vulnerabilities. India still relies heavily on imported components in critical areas—over 70% of APIs, and a majority of solar and electronic parts, for example. However, initiatives like the ALMM framework, large-scale semiconductor projects, and increased domestic manufacturing are early steps toward reducing that dependency.

Rahul Jain, Managing Director at BCG, summed it up: “The new trade paradigm is about being smart, fast, and compliant. It’s no longer just about being cheap.”

The report concludes with four key imperatives for India's trade future: build for both domestic and global markets, move up the value chain, adopt green and digital supply chains, and invest in end-to-end resilience.

With the right strategy, India could emerge not just as a global supplier—but as a core architect of the next-generation global value chain.