India in the GVC diversification strategy: A reality check

For MNCs relocating from China, India needs substantial catching up relative to Vietnam to be considered a significant contender

War and pandemic apart, the restructuring of global value chains (GVCs) and their resilience remained the dominant global concerns of 2022. Friendshoring and allyshoring became the buzzwords in an all-out attempt to diversify away from China.
“China plus n” is now the predominant strategy of large multinational corporations (MNCs) as they grapple with the consequences of the US-China stand-off revealing itself along multiple dimensions in the wake of the crisis in Ukraine. In this wave of supply chain restructuring and diversification, India too is hoping to attract MNCs that are in the process of relocating their subsidiary operations.

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