India’s manufacturing sector draws global attention

New Delhi

India is becoming more attractive to global investors in the manufacturing sector, according to a report released by S&P Global. The report highlights how government policies are boosting India’s competitiveness and helping the country become a key player in global supply chains.

Although manufacturing adds just 17.2% to India’s real GDP, policy steps are helping build stronger domestic capacity. These efforts aim to take advantage of the current global trend of trade protectionism, which is encouraging countries to diversify their supply chains.

S&P Global noted that India is in a strong position as trade and cooperation patterns change. Over the past 30 years, India has expanded in size, scale, and global influence. It is expected to become the world’s third-largest economy by 2030–31.

As global economies shift, India could grow its manufacturing sector faster and play a bigger role in international supply networks. The country is also pushing for a cleaner, self-reliant energy future. One step in this direction is the growing use of biofuels.

According to the report, biofuels can help India in three ways: improving energy security, cutting harmful gas emissions, and increasing farm incomes. India is also working on exploring more crude oil within the country to reduce its energy imports.

While India depends only moderately on global trade for its growth, it remains somewhat protected from sudden changes in tariffs and trade policies. However, S&P warned that India, like others, is still affected by increasing trade barriers worldwide.

The report, titled “India Forward: Transformative Perspectives,” outlines India’s growing role in a changing global economy.