According to S&P Global’s India Research Chapter, rising global trade protectionism could work in India’s favor, positioning it as a top alternative for companies diversifying supply chains. The report forecasts that such shifts could contribute an additional 1.3 percentage points to India’s GDP by FY35, on top of the projected average growth of 5.7% over the next decade.
India is expected to become the world’s third-largest economy by FY31. In the short term, however, heightened global uncertainties may curb private investments and impact growth. Still, India’s enhanced competitiveness in manufacturing makes it a strong candidate for companies exploring new manufacturing hubs outside of China.
The report concludes that as global trade becomes more fragmented, India is well-placed to capture a significant portion of supply chain relocations due to its demographic strengths, policy shifts, and rising industrial capability.