India's manufacturing industry attracts foreign investors and benefits from changes to international trade policy

India has seen considerable improvement in its manufacturing industry to become more inviting to international investors. India's fortunes will be aided in the long term by shifting global trade policy. According to a study by S&P Global India, on Monday, "As economies adjust to shifting trade and evolving tariff issues, India can leverage this moment to enhance manufacturing and global supply chain integration. Local labor, nearness to markets and integration at the region level will attract further investing in this sector. This will propel India's technological growth and manufacturing competitiveness."

The report stated that in the coming years, shifts to global trade policy will be fostering supply chain diversification, which will be hugely positive for India. In this period, high-quality jobs in industries will be generated.

India is still the fastest-growing economy even though real GDP growth slowed down in 2024-25, according to S&P Global. India is, however, lesser dependent on external trade when it comes to growth, which to an extent insulates it from current shifts in global trade and tariffs.

Manufacturing value addition accounts for 17.2 per cent of the country's real GDP. The government has implemented targeted policy measures to build domestic manufacturing capacity and strengthen India's role in global supply chains. The data of the high-frequency purchasing managers index highlight the resilience of domestic manufacturing to challenges compared to other major economies.