Moody’s says Indian ports will benefit as global firms diversify supply chains away from China
Indian ports are expected to emerge as major beneficiaries of the global China+1 strategy, according to a new Moody’s Ratings report. As companies increasingly seek to reduce dependence on China by setting up manufacturing and supply chains in alternative locations, India’s port infrastructure stands to gain from heightened activity, reported timesofindia.indiatimes.com.
The shift away from China is boosting India’s role in global trade, and its ports are now positioned for a significant rise in cargo volumes and investments.
Moody’s highlights that while Chinese ports may face near-term financial strain, ports in India and Indonesia are well-placed to benefit as more companies establish operations outside China. These developments reflect a broader global push to diversify production due to geopolitical tensions, supply chain disruptions, and trade risks.
“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,” the Moody’s report noted.
The report also cautioned that emerging markets, including India, may face pressures from geopolitical tensions like the ongoing India-Pakistan disputes. However, India’s port activity remains resilient due to its large internal market and diversified export mix.
India’s ports mainly cater to domestic demand, shielding them from the worst effects of global trade volatility, while US tariffs have had limited impact on Indian trade flows.
According to Moody’s, the Indian export sector has not been significantly affected by US protectionist measures, unlike some peers, thanks to its broad trade portfolio. This provides added stability to Indian port operations, even amid external economic shocks.
Despite a strong long-term outlook, Moody’s slightly revised India’s 2025 growth forecast downward to 6.3% from 6.7%, citing global macroeconomic headwinds. Growth for 2026 is projected at 6.5%.
India’s port sector stands at a pivotal juncture, with the global realignment of manufacturing offering a potential windfall for cargo handling, logistics, and trade infrastructure.