Article: Reshaping Global Supply Chain and India: A Quest for Friend-Shoring and On-Shoring

Abstract

Geopolitical considerations are playing an increasingly dominant role in countries’ trade policies over recent years. In the context of geopolitical tension and economic fragmentation, countries are reshaping their global value chains (GVCs) to address their economic security from possible future disruption of supply chains. In recent years, countries, particularly, the United States (US) and the European Union (EU) have taken several legal measures and adopted various policy tools either unilaterally or through bilateral and plurilateral alliances that further the idea of friend-shoring and on-shoring. This paper intends to map those legal and policy tools adopted by the United States and the European Union that further the idea of friend-shoring and on-shoring and analyses those tools in the Indian context. The paper argues that though the EU and the US are the largest trading partners of India and their strategies will likely have an impact on India. Nonetheless, India needs to look beyond these strategies pioneered by the US and EU to cater to the needs of its specific industry concerns. Global Value Chain, Supply Chain, Friend-shoring, Nearshoring, Reshoring, Asia-Pacific