India has increasingly positioned itself as a highly reliable and trusted partner in global value chains, helping the international economy remain resilient at a time of elevated tariffs and widespread uncertainty in global trade, Union Minister Ashwini Vaishnaw said while speaking at the annual meeting of the World Economic Forum in Davos.
Vaishnaw made the remarks during a World Economic Forum session held in collaboration with the India Today Group and moderated by Group Vice-Chairperson and Executive Editor-in-Chief Kalli Purie. He reflected on how India has navigated a challenging global environment marked by protectionism and shifting trade dynamics.
Addressing questions on tariffs imposed by the United States, Vaishnaw said India has demonstrated remarkable economic stability during a turbulent period. He attributed this resilience to strong macroeconomic and microeconomic fundamentals, which have helped the country absorb external shocks without derailing growth. According to him, India’s overall economic framework has allowed it to stay steady even as global conditions became more volatile.
He noted that concerns around tariffs slowing exports have not materialised in India’s case. Instead, exports have continued to grow, supported by producers actively exploring and entering new markets. Vaishnaw said Indian exporters have adapted quickly by diversifying destinations and expanding the export base, enabling growth across multiple segments despite external pressures.
Highlighting a significant shift in India’s export landscape, Vaishnaw pointed to the rapid rise of electronics as a major export category. He said electronics exports have now become India’s third-largest export segment, following engineered goods and petroleum products. Describing this transformation as extraordinary, he noted that such a development would have seemed almost impossible a decade ago and even hard to imagine just five years in the past.
Vaishnaw explained that India’s trade strategy now focuses on widening its global footprint through both market diversification and balanced trade agreements. He said India is actively engaging with a range of countries and regions to establish mutually beneficial trade partnerships that complement domestic growth objectives while strengthening global economic ties.
He cited ongoing and completed engagements with countries such as the UK, Switzerland, the UAE, Qatar, Australia and New Zealand, and added that discussions with Europe are currently underway. This broader outreach, he said, reflects India’s intent to integrate more deeply with global markets while maintaining strategic balance.
According to Vaishnaw, the most fundamental change over the past decade has been the way the world perceives India’s role in global manufacturing. He said India is no longer seen merely as a low-cost production base or a conventional supply chain partner, but as a trusted value chain partner with a deeper and more strategic role.
Elaborating on this distinction, he said a traditional supply chain partner typically manufactures according to designs and specifications provided by others. In contrast, a value chain partner collaborates throughout the entire process, from product design and innovation to understanding consumer needs and shaping final offerings. This shift, he said, marks a qualitative transformation in India’s engagement with global industries.
Vaishnaw cited the semiconductor sector as a clear example of this evolving perception. He recalled that just three years ago, scepticism was widespread about India’s ability to manufacture semiconductors. At that time, many believed the country lacked the capacity and ecosystem required for such a complex industry.
He said that perception has since changed dramatically. Today, according to Vaishnaw, the global semiconductor industry increasingly views India as one of the most important and trusted value chain partners. He emphasised that in an era of global uncertainty, trust, long-term positioning and collaboration across the value chain have become critical, and India has successfully built credibility on all three fronts.
