FICCI-BCG report calls for diversified, digital and compliant value chains for India
A joint report titled ‘Evolving Landscape of Global Value Chains’ by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Boston Consulting Group (BCG) has stressed the need for companies to design value chains that are diversified, digitally enabled, and compliant with evolving global standards beyond efficiency and scale.
For decades, globalisation and integrated supply networks steadily reduced costs, making industries such as automobiles, renewables, chemicals, and pharmaceuticals cost-competitive, the report said, adding that this advantage is now under strain. Successive shocks from pandemic disruptions, climate events, and stricter sustainability requirements have revealed the vulnerability of hyper-optimised 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,” it said.
In this new environment, the report outlined four imperatives as the way forward for India. Highlighting the need to make in India for India, the first imperative stressed the need to strengthen domestic capacity to reduce import dependence and secure critical value chains across sectors such as semiconductors, renewables, and pharmaceuticals.
Make in India for the world
Suggesting the need to make in India for the world, the second imperative urged the need to leverage free trade agreements (FTAs) and new market access opportunities to embed India more deeply into global value chains, particularly in Europe and emerging geographies.
The third imperative suggested the need to transition into higher-value segments by investing in innovation, advanced manufacturing, and disaggregated industry niches.
The final imperative in the report focused on the need to integrate digital command centres, traceability tools, and sustainability practices as non-negotiable elements of competitiveness in an era where compliance increasingly determines market access.
The report said that resilience is no longer the final objective but the starting point for long-term competitiveness. Companies that act decisively now by embedding adaptability, digital innovation, and sustainability into their value chains will not only withstand disruption but also position themselves as indispensable partners in the redefined global trade landscape.
Unique opportunity
The report noted 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.
Quoting Abhishek Bhatia, Managing Director and Partner at BCG, a media statement said: “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.”
Jyoti Vij, Director General, FICCI, said 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, she said.
Published on September 15, 2025
