A new study by S&P Globaltitled “India Forward: Transformative Perspectives” highlights India’s rising appeal as a global manufacturing hub. As international trade dynamics shift, India is emerging as a key beneficiary. Here’s what the report reveals:
Key Highlights :
- Strategic Momentum: India is well-positioned to capitalize on global trade realignments and tariff shifts, fueling accelerated growth in manufacturing.
- Supply Chain Advantage:
- Shift towards local sourcing and regional integration is boosting India’s attractiveness.
- India stands to gain fromsupply-chain diversification as companies reduce reliance on traditional manufacturing bases.
- Investor Magnet:
- Global investors are increasingly viewing India as a competitive and resilient manufacturing destination.
- The focus on technology advancement and high-quality job creation is drawing interest.
- Policy Push:
- Targeted government interventions are helping build domestic manufacturing capacity.
- These efforts are aimed at strengthening India's role in global supply chains.
- Economic Resilience:
- Despite a slowdown in FY25 real GDP growth, India remains the world’s fastest-growing large economy.
- Its moderate dependence on external trade offers some insulation from global volatility.
- Current Performance:
- Manufacturing contributes 18.2% to India’s real GDP.
- High-frequency HSBC PMIdata indicates India's manufacturing sector is resilient compared to global peers.
With a blend of policy reform, strategic location, and strong fundamentals, India is steadily becoming a preferred destination for global manufacturing investment. The road ahead looks promising for deeper integration into global value chains.
