Customs at core of India’s high logistics performance. Key to its role in global value chains
March 28, 2023
Advancements in transportation and communication technologies have significantly transformed global development since the second half of the 20th century. These improvements have had a long-lasting impact, as evidenced by the research of Nobel Prize-winning economist Angus Maddison in his work, The World Economy: A Millennial Perspective. This duo of transportation and communication technology development facilitated what American economist Jeffrey Sachs refers to as the seven “ages of globalisation”.
Globalisation was borne by interconnectedness in the movement of trade, people, and information around the world. This led to the creation of specialised global value chains (GVCs). The World Bank’s World Development Report 2020 highlights that a 1 per cent increase in participation in GVCs is estimated to boost the per-capita income levels by more than 1 per cent, which is about twice as much in the case of conventional trade expansion. Thus, participation in GVCs can boost inclusive and sustainable growth, reduce poverty, and create sustainable employment opportunities with better pay and income.
Indian customs plays a crucial role in facilitating participation in global value chains.