<p>The study investigates the unexplored linkage between GVC participation and business performance measured by both financial performance and resilience in the context of an emerging economy, India. The study further examines the foreign ownership advantages as per the OLI paradigm, which is investigated through interaction terms of foreign ownership with GVC participation. To achieve this, a comprehensive dataset of 85,468 firm-year observations from 2004 to 2023 of Indian manufacturing firms is used. We employ a two-pronged estimation strategy, starting with propensity score matching, to overcome the self-selection bias, and then the resulting matched sample is used to estimate the fixed-effect model. Further, to explore the effect of heterogeneity due to firm size, panel quantile regression is used. Drawing on dynamic capabilities theory, empirical results show that GVC participation has a significantly positive impact on financial performance. However, foreign-owned firms get higher profitability premiums than non-foreign-owned firms. Moreover, the benefits of GVC participation are not homogeneous, and only medium- and large-sized firms can reap the benefits. We also provide evidence that GVC firms are less financially resilient than non-GVC firms. These results are robust in relation to alternative measures of GVC participation and business performance. The findings suggest that managers should consider GVC participation as a viable strategy for enhancing financial performance, but this comes at the cost of reduced financial resilience. Firms can explore multiple financing sources, like venture capital or private equity, to strengthen the financial buffer and mitigate this negative impact. Further, policymakers should encourage firms to participate in GVC by framing favourable policies related to foreign direct investment and promoting special economic zones.</p>