India’s manufacturing sectors are attracting global investors S&P Global Study says:
New Delhi: India has made progress in the manufacturing sector, making it more attractive for global investors amid the ongoing international trade policy, which would benefit India in the long run, according to the S&P Global study stated on Monday.
The research paper was titled ‘India Forward’. Transformative Perspective stated that economies adapt to evolving trade dynamics and tariff changes; furthermore, the research stated that India can capitalise on this momentum for accelerated manufacturing growth and greater supply chain integration.
The study highlighted the importance of local sourcing and regionalism, which will enhance bringing more investment, which leads to employment creation. Beyond the near term, changes in global trade policy would catalyse supply chain diversification, to the benefit of India,” it added. The study said India has made “notable progress” in enhancing its competitiveness and making its manufacturing sector “more attractive to global investor”s”
Despite the global slowdown, India remains the fastest-growing economy for the current fiscal year. The study also stated that India’s moderate dependence on external trade will add cushions from tariff policies and ongoing global trade shifts. While manufacturing value added accounts for a modest 17.2 per percent 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.
“High-frequency HSBC Purchasing Managers’ Index (PMI) data … highlights the domestic manufacturing sector’s resilience to recent global headwinds compared with other major economies,” the study noted.
(Subham Singh)
