Indian Ports Poised to Gain from China+1 Strategy: Moody’s Ratings

As global supply chains continue to evolve, India appears well placed to capitalise on the growing corporate shift away from China, according to the latest assessment by global ratings agency Moody’s Ratings.

In a newly released report, which is cited by Bloomberg, Moody’s observed that the China+1 strategy—a movement by multinational companies to diversify manufacturing operations outside of China—could work in India’s favour, particularly for its ports and logistics infrastructure.

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“Ports in India and Indonesia could benefit as companies realign their supply chains. In contrast, Chinese ports may face some financial strain, though most have the capacity to weather short-term pressures,” the report said.

India’s relative insulation from trade-related headwinds is another factor working in its favour.

Moody’s noted that the country’s limited reliance on exports to the United States, coupled with a diversified trade portfolio and the strength of its domestic market, makes it less susceptible to the impact of protectionist measures like tariffs.

“These attributes position India well to manage the ripple effects of escalating trade tensions,” the agency said.

Despite the structural positives, Moody’s has revised its GDP growth forecast for India in 2025 to 6.3%, down from its earlier projection of 6.7%. The downgrade comes amid a cautious global outlook marked by rising policy uncertainty and fragile investor confidence.

Nevertheless, the agency expects a recovery in 2026, with growth anticipated to inch up to 6.5%, driven by ongoing investment momentum and consumption.

Echoing similar concerns, the United Nations recently lowered India’s 2025 growth forecast to 6.3%, citing signs of moderation in the global economy. However, it also reaffirmed India’s status as one of the world’s fastest-growing large economies, crediting robust consumer demand and continued public spending as key drivers of resilience.