The global value chain is undergoing a structural transformation. For decades, they were built on the principles of globalization — scale, efficiency, and low-cost production. These networks enabled industries across the world to grow rapidly and deliver affordable goods at unprecedented scale. That foundation remains important, but it is no longer sufficient.
A new paradigm is taking shape, where resilience, adaptability, and compliance are as critical as efficiency and cost. The ability to withstand disruption, diversify sourcing, and meet rising sustainability and regulatory expectations is now central to competitiveness. GVCs, once viewed as background enablers, have become strategic assets that directly influence growth, innovation, and long-term advantage.
This report, developed by BCG in collaboration with FICCI, examines how these shifts are reshaping the design of global value chains and what they mean for businesses and economies. Companies worldwide are investing in technology-enabled visibility, regional
hubs, and traceable standards — balancing efficiency with resilience, and cost with compliance.
The reconfiguration of GVCs presents both opportunities and challenges for India and consequently Indian companies. The opportunity for Indian companies lies in repositioning themselves as a reliable and future-ready partners in global trade. The challenge comes from adapting to higher thresholds of compliance, evolving cost structures, and shifting policy landscapes. To navigate this transition, the report identifies four imperatives for Indian companies: strengthening domestic capacity to reduce import dependence, leveraging trade agreements and new market access to integrate deeper into GVCs, moving up the value chain by investing in innovation and higher-value segments, and embedding digital, traceable, and green practices as the foundation of competitiveness.
In this new era, resilience is not the end goal but the basis for sustainable and long-term success.