Daijiworld Media Network - New Delhi
New Delhi, May 19: India is making significant strides in enhancing its manufacturing competitiveness and attracting global investment, according to a new S&P Global report released Monday. The report highlights policy-driven progress aimed at positioning the country as a key player in the reconfiguration of global supply chains.
Although manufacturing contributes just 17.2% to India’s real GDP, the government has introduced targeted interventions to expand domestic industrial capacity and improve the country’s global supply-chain integration. The report notes that India stands to benefit from rising trade protectionism, which could accelerate efforts by multinational companies to diversify production bases.
The study, titled “India Forward: Transformative Perspectives”, outlines how India is poised to capitalize on shifting global trade dynamics and is on track to become the world’s third-largest economy by fiscal year 2030-31.
“As the global trade environment continues to evolve, India is strategically placed to gain from supply-chain diversification efforts,” the report states. “This momentum could fuel accelerated manufacturing growth and deeper global integration.”
The report also points to India’s transition towards alternative energy sources, underscoring biofuels as a cornerstone of the country's sustainable energy strategy. S&P Global described biofuels as offering a “triple-win” — addressing energy security, cutting greenhouse gas emissions, and increasing income opportunities in the agricultural sector.
In the broader energy landscape, India aims to balance energy and revenue security by ramping up domestic crude oil exploration and development. Recent regulatory reforms are expected to support these ambitions, helping reduce reliance on imported fossil fuels.
Despite its moderate dependence on external trade for economic growth, the report warns that India is not immune to rising global protectionism. However, this relative insulation allows India some flexibility amid shifting trade and tariff landscapes.
Overall, the report paints an optimistic picture of India’s trajectory, highlighting the country’s growing role in shaping global economic and energy futures.