UBS reports India’s structural growth remains intact, driven by infrastructure and global supply chain diversification.
A fresh report from UBS indicates that India’s structural economic expansion remains steadfast despite global volatility. The analysis positions the nation as a primary beneficiary of the ongoing global supply chain realignment, establishing it as a durable alternative to traditional manufacturing hubs.
Logistics and supply chain highlights
- Network expansion: Systematic investment in infrastructure and the diversification of supply chains are creating multi-year opportunities for the Indian market.
- Manufacturing shift: A growing number of global corporations are relocating production to India as part of the “China Plus One” strategy, which the report classifies as a long-term structural trend.
- Anchor for growth: Sustained government expenditure on transport and logistics networks serves as a critical differentiator, helping to maintain a 7% GDP growth rate.
- Internal resilience: Driven largely by domestic demand, the economy remains less susceptible to external financial shocks compared to other emerging markets.
The findings suggest India is on a definitive path to becoming the world’s third-largest economy by 2028. For those in the maritime and freight sectors, this signals a consistent rise in cargo volumes and a more central role for Indian ports within global trade networks throughout the next decade.
SOURCE – ET
