Indian Economy News

Indian ports set to gain from ongoing supply chain shift? Moody’s weighs in on the China+1 strategy

Indian ports are set to gain significantly from the global China+1 strategy as companies diversify their supply chains away from China. Moody's Ratings, in its latest report released on May 20, highlighted that while Chinese ports may face short-term financial challenges, ports in India and Indonesia could see increased activity. This shift is driven by geopolitical tensions and India's relatively low exposure to US tariffs. The report noted that most cargo moving through Indian and Indonesian ports serves the domestic market. 
Beyond geopolitical concerns, the report pointed out that India's exposure to US tariffs is relatively low compared to other markets, thanks to its diversified export base and a robust domestic economy. "India has a relatively low overall exposure—and more diversified exports to the US. The report said that these attributes and its large domestic economy position India well to deal with US tariffs," the report said. Moody's has revised India's 2025 growth forecast to 6.3% from the previous 6.7%, though they remain optimistic for 2026, forecasting growth of 6.5%. With the global manufacturing shift gaining momentum, Indian ports may be in the right place to capitalise on this trend at the right time.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.