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Trade Tensions

Conditional globalization is reshaping trade as countries impose tariffs to protect domestic industries. This fragmentation can increase costs, disrupt supply chains, and strain international relations, posing both risks and opportunities for businesses and policymakers.

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India’s manufacturing opportunity amid global trade uncertainty

India remains the world’s fastest-growing large economy despite a slowdown in real GDP growth in fiscal 2024-25. It has moderate dependence on external trade for growth, which cushions it somewhat from ongoing shifts in global trade and tariff policies, though it is not immune to the rising trade protectionism.

While manufacturing value added accounts for a modest 17.2% of the country’s real gross domestic product (GDP), the government has implemented targeted policy interventions to build domestic manufacturing capacity and strengthen India’s role in global supply chains.

High-frequency HSBC Purchasing Managers’ Index® (PMI) data — compiled by S&P Global Market Intelligence — highlights the domestic manufacturing sector’s resilience to recent global headwinds compared with other major economies.

An analysis of S&P Global Market Intelligence’s Strategic Opportunity Index® (SOI) over time indicates that India has made notable progress in enhancing its competitiveness and making its manufacturing sector more attractive to investors.

Economic & Credit Impact

Trade, Tarrifs, & Policy

Trade, Tariffs, & Policy

S&P Global Ratings believes there is a high degree of unpredictability around policy implementation by the U.S. administration and possible responses—specifically with regard to tariffs—and the potential effect on economies and credit conditions.

Energy & Commodities

Trump Administration and Commodities

Trump Administration and Commodities

S&P Global Commodity Insights covers the impact on energy, commodities and trade flows from US President Donald Trump's emphasis on "energy dominance" and enactment of executive orders, a national energy emergency declaration and tariffs.

Trade & Supply Chain

International Trade and Tariffs Insights & News

Stay ahead of the latest developments with our dedicated page featuring expert analysis, data, and commentary on global tariff actions. We've brought together perspectives and insights from across our organization—all in one place.

Automotive

Rapid Impact Analysis

Rapid Impact Analysis

S&P Global Mobility experts provide guidance on the ramifications of new government policies, including tariffs, for the automotive industry.

Events & Webinars

The Decisive

Our experts provide insights and analysis to empower confident decision-making. Whether you're a business leader, investor, or simply curious about the forces shaping our world, The Decisive podcast is here to provide you with the knowledge you need to stay ahead. Join our team of seasoned analysts as they explore the ever-changing landscape of maritime, trade and supply chain, economics and country risk.

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This report does not constitute a rating action, neither was it discussed by a rating committee.