India Ascends as a Trusted Global Value Chain Partner, Minister Vaishnaw Reports
India has solidified its position as a “very trusted value chain partner” for the global economy, demonstrating remarkable resilience in the face of escalating tariffs and widespread trade uncertainty. This assessment comes from Union Minister Ashwini Vaishnaw, speaking at the World Economic Forum’s annual meeting in Davos on January 21, 2026. The session, developed in collaboration with the India Today Group, was moderated by Group Vice-Chairperson and Executive Editor-in-Chief Kalli Purie.
Navigating Global Economic Headwinds
Responding to questions regarding tariffs imposed by the United States, Vaishnaw emphasized India’s ability to maintain stability during a period of significant global economic challenges. “We are a very resilient economy,” he stated. “The fundamentals – macro as well as micro – are very strong. And that’s really helped us through this turbulent period.” Contrary to expectations, these tariffs have not hindered India’s export growth. In fact, exports have increased as Indian producers proactively seek and establish new markets, fostering expansion within the export sector.
The Rise of Electronics Exports
A significant shift in India’s export profile is underway, with electronics emerging as a key growth driver. Vaishnaw highlighted that electronics exports have now become the third largest exported commodity from India, surpassed only by engineered goods and petroleum products. “Which was like unbelievable even 10 years ago. Five years ago, this was unbelievable,” he added, underscoring the magnitude of this transformation.
Diversifying Trade Relationships
India is actively pursuing a strategy of trade diversification, forging new partnerships and negotiating balanced trade agreements. According to Vaishnaw, the country is focused on expanding its market reach into new geographies while simultaneously engaging in discussions for mutually beneficial trade agreements with a diverse range of nations. These include the UK, Switzerland, the UAE, Qatar, Australia, and New Zealand, with ongoing discussions currently underway with Europe.
From Supply Chain to Value Chain: A Paradigm Shift
Over the past decade, the global perception of India’s role in global manufacturing has undergone a fundamental change. Vaishnaw explained that India has evolved from being perceived merely as a supply chain partner to a value chain partner. He clarified the distinction, stating that a supply chain partner focuses on manufacturing to pre-defined designs and specifications, while a value chain partner actively collaborates in the entire process – from design and development to understanding evolving customer needs.
Semiconductors: A Symbol of Transformation
The semiconductor industry serves as a compelling example of this shifting perception. Vaishnaw recalled that just three years prior, skepticism prevailed regarding India’s ability to manufacture semiconductors. “In the same room three years ago, when we discussed semiconductors, people thought that India will never be able to manufacture semiconductors,” he noted. However, that view has been decisively overturned. “Today, the entire semiconductor industry believes that India is the most important trusted value chain partner,” Vaishnaw affirmed, emphasizing the critical importance of trust and strategic positioning in navigating global economic turbulence.
