Prof Ankita Dash’s research paper titled ‘Anatomizing India’s Presence in Automotive Global Value Chains’ has been published in Foreign Trade Review. Rupa Chanda (Director, Investment, Innovation and Trade Division, UNESCAP and Professor, Department of Economics and Social Sciences, Indian Institute of Management Bangalore, Bangalore, Karnataka, India) is her co-author. This article attempts to discover the potential factors affecting Global value chains (GVCs) participation of automotive firms in India. Global value chains (GVCs) are the modus operandi of contemporary international trade and production. However, the operational underpinnings of what facilitates or hinders the participation of firms in their respective sectoral GVCs in India are surprisingly understudied. This article attempts to discover the potential factors—ranging from regulatory, institutional, technological, trade-related, and financial to sectoral, and input-related elements—affecting GVC participation of automotive firms in India. A firm-level field survey was undertaken to better understand firms’ perceptions regarding these factors. The findings were analyzed using principal component analysis (PCA) and partial least squares structural equation modelling (PLS-SEM), which revealed that certain policies such as state government initiatives and the Competition Act, as well as trade facilitation measures like standardization of procedural requirements and trade agreements, were the most significant factors aiding firms’ participation in automotive GVCs, while institutional, technological and input-related aspects were deterrents to such participation. These findings have important implications for policymaking in the country for encouraging greater GVC participation of firms, especially small and medium enterprises.
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