Industrial Policy Challenges for India Global Value Chains and Free Trade Agreements
This book looks at the debates on global value chains (GVCs) and free trade agreements (FTAs) as springboards for industrial development in developing countries, especially India. It connects the outcomes in GVC-led industrial restructuring and upgrading to industrial policy choices in trade and FDI liberalisation, in particular those through FTAs.
With the share of manufacturing in GDP stagnant at around 15–16% since the 1980s, India’s policymakers have pinned their hopes on greater integration into GVCs to revitalise the manufacturing sector. The multiple FTAs the country has signed over the last few years, specifically the ones with the Association of Southeast Asian Nations (ASEAN), South Korea, Malaysia and Japan have been sought to be rationalised using the same argument. The book argues that failing to factor in the industrial policy causalities involved in sustainable indigenous technology development, structural barriers to the entry into GVCs, the assessments of the available evidence on the adverse impact of trade and FDI liberalisation as well as existing FTAs on firm-level incentives for undertaking domestic production, and the industrial policy constraints imposed by FTAs can prove costly for the trajectories of developing country economies, including India.
Rich in data, this book will be useful to scholars and researchers of development economics, economics in general, development studies and public policy as well as government bodies, industry experts and policymakers.
1. Introduction 2. Industrial Policy: Evolution of the Discourse 3. Global Value Chains: Heightening the Industrial Policy Imperative 4. Liberalisation Sans Industrial Policy: The Experience of Indian Electronics Industry 5. Industrial Policy Constraints in Indian FTAs 6. Conclusion. Bibliography
‘Ably examining the interactions between trade and foreign investment "liberalisation" and other industrial policies, and their implications for Indian industrial restructuring, Smitha Francis critically considers Indian participation in global value chains, especially electronics, and with plurilateral "free trade" agreements.’
Jomo Kwame Sundaram, former UN Assistant Secretary General for Economic Development
‘India’s economy is delicately poised in the context of today’s globalisation. Smitha Francis’s theme that India urgently needs firm-level industrial policy is well argued, convincing, timely and relevant beyond India.’
Pasuk Phongpaichit, Professor Emeritus in Political Economy, Chulalongkorn University, Bangkok, Thailand
‘A path-breaking book, which undertakes a critical look at the interactions between trade, FDI, global value chains and manufacturing sector in India. A highly recommended book for researchers and policymakers.’
Abhijit Das, Professor and Head, Centre for WTO Studies, New Delhi, India
‘Global production networks have changed forever the way in which cross-border transactions in goods and services are conducted. Smitha Francis has provided a remarkable account of this complex phenomenon with considerable deftness. This volume is a must-read for all students of international economics.’
Biswajit Dhar, Professor, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi, India