ISAS South Asia Scan

India is strengthening its role in global trade and value chains through key policy reforms and post-COVID-19 pandemic export growth, emerging as a preferred alternative under the China-plus-one strategy. While exports have become more diversified and India’s role in parts and components trade has grown, rising foreign input in services and persistent challenges – such as geopolitical tensions, non-tariff barriers and climate policies – pose hurdles. This South Asia Scan calls for redesigning the Production Linked Incentive scheme, improving trade agreements and supporting small firms, with the Association of Southeast Asian Nations seen as crucial to India’s future trade and economic growth.