Benefit for India: How Indian ports will gain from China+1 strategy - Moody's explains

Indian ports are positioned to gain advantages from the worldwide China+1 strategy, according to Moody's Ratings' latest report. As organisations establish manufacturing facilities in India, diversifying their production and supply networks beyond China, this could substantially enhance port activities across the country.

Moody's analysis indicates that whilst Chinese ports might encounter immediate financial difficulties, ports in countries such as India and Indonesia could experience increased operations as international organisations seek to decrease their Chinese dependencies.

"In Asia, Chinese ports' financials could weaken although most have the financial capacity to withstand near-term stresses. And ports in India and Indonesia could benefit from the China+1 strategy – companies' effort to diversify their manufacturing and supply chain operations by establishing facilities in countries outside China," the Moody's report said.

Also Read | Forced to destroy! US rejects 15 mango shipments from India, exporters estimate losses of $500,000

Moody's additionally observed the pressure that disputes, including recent India-Pakistan tensions , could impose on developing markets.

The analysis indicates that Indian and Indonesian ports primarily handle cargo destined for their respective domestic markets.

India's diverse export portfolio and strong internal market have resulted in minimal impact from US tariffs, setting it apart from other economies in terms of trade vulnerability.

Whilst maintaining a positive outlook, Moody's has adjusted India's growth projection for 2025 downwards to 6.3% from 6.7%, whilst predicting a 6.5% growth rate for 2026.

The strategic positioning of Indian ports appears advantageous as global manufacturing patterns undergo significant changes, presenting opportunities for growth and development.

Also Read | Why India can be a big winner of Donald Trump 2.0 era if it plays its cards right