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India Well-positioned To Capitalize Tariff Challenges, Accelerate Manufacturing: S&P Global Study

Updated: May 19, 2025 04:43:06pm
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India Well-positioned To Capitalize Tariff Challenges, Accelerate Manufacturing: S&P Global Study

New Delhi, May 19 (KNN) A new study from S&P Global indicates that India has achieved significant progress in enhancing the attractiveness of its manufacturing sector to international investors, with ongoing global trade policy shifts expected to benefit the country over the long term, according to findings released on Monday.

The S&P Global India Research Chapter's report, "India Forward: Transformative Perspectives," suggests that India is well-positioned to capitalise on evolving trade dynamics and tariff challenges to accelerate manufacturing growth and deepen its integration into global supply chains.

The analysis indicates that strategic transitions toward local sourcing, proximity to end markets, and enhanced regional integration are likely to attract additional investment to India's manufacturing sector. 

These developments could potentially accelerate the country's technological advancement and manufacturing competitiveness while generating high-quality employment opportunities.

"Beyond the near-term, changes in global trade policy would catalyse supply-chain diversification, to the benefit of India," the report states, highlighting the long-term strategic advantages that may emerge from current global economic realignments.

The study acknowledges India's "notable progress" in strengthening its competitive position and increasing the appeal of its manufacturing ecosystem to global investors. 

According to the S&P Global analysis, India's moderate dependence on external trade for economic growth provides a degree of insulation from global trade and tariff policy shifts, though the country remains vulnerable to increasing trade protectionism. 

The report notes that while manufacturing value added constitutes a relatively modest 17.2 percent of India's real gross domestic product, the government has implemented targeted policy interventions to develop domestic manufacturing capacity and strengthen the country's position in global supply networks.

The study cites high-frequency HSBC Purchasing Managers' Index data as evidence of "the domestic manufacturing sector's resilience to recent global headwinds compared with other major economies," underscoring India's comparative stability amid international economic volatility.

(KNN Bureau)

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