More than 40% of multinational companies plan to expand operations in India, driven by the country’s rapid economic growth and favorable trade reforms, according to a recent report by Standard Chartered.
India has emerged as a leading destination for multinational companies (MNCs) looking to expand their operations, with over two in five firms planning to increase their trade and manufacturing presence in the country. This trend is highlighted in the report titled “Future of Trade: Resilience” by Standard Chartered, which emphasizes India’s appeal as the world’s most populous market and one of the fastest-growing large economies.
The report indicates that India’s growing significance as a hub for multinational investment is largely due to its expanding consumer base, favorable business reforms, and strategic location within Asia. As companies aim to diversify their operations and explore new markets, India’s robust economic growth and supportive policy initiatives position it as an attractive destination for global trade and manufacturing expansion.
A survey conducted among 1,200 senior executives across 17 markets revealed that more than 40% of respondents plan to expand their operations in India. This interest is primarily fueled by India’s status as the most populous country and one of the fastest-growing major economies in the world.
“India is the leading market of interest from our survey, where almost half of the respondents are looking to ramp up or maintain trade activities,” the report noted. The findings also highlighted that over 60% of corporations from the United States, United Kingdom, China, Hong Kong, and Singapore are among those planning to boost trade and investment in India.
In addition to the growing interest from multinational companies, the report pointed to India’s recent trade initiatives, including a free trade agreement with the UK and efforts to enhance market access with Singapore and China. These reforms, aimed at attracting foreign investment, have contributed to India’s ascent in the global value chain.
Despite the positive outlook for India, the report also acknowledged that trade tariffs remain a significant concern for companies worldwide. Emerging technologies and overall economic growth are increasingly influencing corporate strategies, with around 53% of executives surveyed identifying these factors as key drivers of the future of international trade.
Recent developments in global trade have also introduced complexities. The United States has imposed a 50% tariff on certain Indian exports, including a 25% levy related to India’s ongoing imports of Russian oil. This move underscores the rising tensions in global trade, even as companies seek new strategies to navigate the evolving landscape.
“Although trade fragmentation is likely to hinder global growth in the short term, rising prosperity in developing economies and emerging technology mean that the picture, while complex, is still compelling,” remarked Sunil Kaushal of Standard Chartered in an interview with The Economic Times.
The report further emphasizes that Asia will continue to be a key driver of trade growth over the next three to five years. While the Middle East is gaining prominence, the United States remains a significant player in the global trade arena. “Yet one thing is also clear: both the U.S. and Mainland China will remain key players in the global supply chain,” the report concluded.
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