MUMBAI: A global survey of 1,200 senior executives from multinationals spread across 17 countries has named India as the most favoured investment destination or market of interest, both for setting up manufacturing units as well as sourcing, highlighting the significant shift in global corporate strategies as they realign their trade and manufacturing activities.
According to a report by Standard Chartered Bank, India tops a list of six key markets of interest for global corporates looking to realign their supply chains geographically with respect to sourcing, manufacturing and exports, with 47%, 41% and 48% of the respondents respectively naming the world’s fourth largest economy as the top country of interest, followed by Malaysia at 35%, 31%, 37% respectively. Interestingly, the US is the least favoured on these scores among the six markets.
According to an online survey, conducted by Standard Chartered Bank, between July and early August, among 1,200 top executives/ key trade finance decision-makers from multinationals based in 17 key markets and operating in consumer and retail; energy; power and diversified industries; and technology, media and telecommunications, India has emerged as the top market of interest for them to realign their trade and manufacturing activities in the next three to five years.
The 17 markets covered are Britain, Egypt, Hong Kong, India, Indonesia, Kenya, China, Malaysia, Nigeria, the Philippines, Saudi Arabia, Singapore, South Korea, Thailand, the UAE, the US and Vietnam, StanChart said Tuesday.
Nearly half of the survey participants have picked India as their leading market of interest to ramp up or maintain trade activities, while two in five intend to ramp up or continue manufacturing activities. In particular, over 60% of corporates from the US, Britain, China and Hong Kong are looking to increase trade with India.
Overall, the report reveals that while trade tariffs are top of mind, emerging technologies and global economic growth are equally critical factors, with 53% of corporates respectively ranking those as the top strategic drivers shaping the future of global trade.
“The report offers a forward-looking perspective on global corporate priorities to build resilience. It serves as a strategic compass, highlighting the top destinations that multinational companies are considering for realigning their sourcing, manufacturing, and exports. It also provides actionable insights to shape decision making, such as investing in supply chain finance platforms and digitalisation to improve treasury management, corporate cashflows, and supply chain diversification,” said Sunil Kaushal, global co-head of corporate & investment banking and chief executive of StanChart India, South Asia and Asean.
Corporate leaders believe that Asia will continue to drive trade growth in the next three to five years, with rising prominence from the Middle East, and the US remaining as a heavyweight. The report also reveals corridors that will see increased trade and manufacturing activities.
The next four countries of interest for sourcing, manufacturing and exports are China with 31%, 26% and 33%, respectively, followed by Indonesia at 23%, 20% and 23%, the UAE at 18%, 18% and 21% and the US at the lowest/sixth slot, with only 16% of the respondents looking to source from the country, which of late has been too inward looking, and just 9% percent looking to set up manufacturing units and 19% interested in exports.
Source: The New Indian Express
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