India has made notable progress in improving its competitiveness and making its manufacturing sector more appealing to global investors, according to a report by S&P Global released on Monday.
Although manufacturing value added accounts for a modest 17.2 percent of the country’s real gross domestic product (GDP), the government has introduced targeted policy measures aimed at building domestic manufacturing capacity and strengthening India’s position in global supply chains.
In the long term, India stands to benefit from rising global trade protectionism, which could accelerate supply chain diversification, the report noted.
India is well-positioned to seize emerging opportunities as global trade and cooperation continue to evolve. Over the past three decades, the country has grown significantly in size, scale, and international influence, and it is on track to become the world’s third-largest economy by fiscal year 2030–31.
As global economies adapt to changing trade dynamics and tariff-related challenges, India can leverage this momentum to accelerate its manufacturing growth and deepen integration into global supply chains, said the report titled “India Forward: Transformative Perspectives.”
The report also highlights India’s efforts to promote alternative energy sources in pursuit of a cleaner, self-reliant transportation future.
The adoption of biofuels is a key part of this strategy. Biofuels offer a “triple-win” solution by addressing energy security, reducing greenhouse gas (GHG) emissions, and creating income opportunities for the agricultural sector.
India is also expected to follow a path where energy security aligns with revenue security. Recent regulatory changes have opened new opportunities for enhancing crude oil exploration and development as part of the country’s goal of achieving energy self-sufficiency.
While India has a moderate reliance on external trade for growth, which provides some insulation from global shifts in trade and tariff policies, it is not entirely immune to rising protectionist trends, the report added.
IANS