India turns manufacturing more attractive to investors: S&P Global

India can capitalise on the momentum created by economies adapting to evolving trade dynamics and tariff challenges for accelerated manufacturing growth and greater global supply-chain integration, S&P Global India Research Chapter's study, titled 'India Forward: Transformative Perspectives', said.

The country’s manufacturing sector can attract additional investment by shifting to local sourcing, raising its proximity to end-markets and enhanced regional integration, accelerating India's technological advancement and manufacturing competitiveness and creating additional high-quality manufacturing jobs, it said.

"Beyond the near-term, changes in global trade policy would catalyse supply-chain diversication, to the benefit of India," it added.

Due to moderate dependence on external trade for growth, the Indian manufacturing sector are somewhat cushioned from ongoing shifts in global trade and tariff policies, though it is not immune to the rising trade protectionism, the report observed.

While manufacturing value added accounts for a modest 17.2 per cent of the country's real gross domestic product (GDP), the government has implemented targeted policy interventions to build domestic manufacturing capacity and strengthen India's role in global supply chains.

ALCHEMPro News Desk (DS)