1. Indian Institute of Foreign Trade, Dehli, India
2. Oregon State University, USA
pandemic has significantly impacted global businesses with operations or
suppliers in China. Against such a backdrop, this paper analyses the
opportunity of India as the counterpart to China to establish and control
global value chains (GVCs) in the pandemic of COVID-19 using a global trade
analysis project framework. We begin by identifying sectors that are becoming
more and more integrated into EU global value chains and have been negatively
impacted by Chinese company closures. Of all the affected industries, we
concentrate on those sectors in which India enjoys a comparative advantage over
China and examine the effects of an EU-India free trade agreement on these
sectors as well as India's overall macroeconomic indices. The study reveals that
both India and the European Union stand to benefit from a free trade agreement.
However, despite the gains, India’s trade balance is also expected to reduce
due to increased imports as a result of reduction in the import duty.