India Positioned as a Key Manufacturing Alternative, Says Piyush Goyal
Business News Live: World sees India as credible manufacturing alternative, says Piyush Goyal

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Piyush Goyal highlighted India's growing reputation as a credible manufacturing alternative on the global stage. Gita Gopinath from the IMF noted concerns about India's AI sector affecting foreign investment, while Ceat discussed integrating Camso's value chain and anticipated further price hikes due to rising raw material costs.
- 01Gita Gopinath of the IMF does not foresee an immediate RBI rate hike but acknowledges its potential necessity if inflation rises.
- 02India's AI development is currently seen as a hindrance to attracting foreign institutional investment.
- 03Ceat is integrating Camso's operations and expects the acquisition to positively impact earnings per share by FY28 or early FY29.
- 04Raw material costs have surged by 20% compared to the previous quarter, prompting Ceat to consider a 12% price increase to maintain margins.
- 05Ceat has already implemented a 6-7% price hike and plans further increases in June or July to counter rising costs.
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Piyush Goyal emphasized India's emergence as a credible alternative for global manufacturing, reflecting a shift in perception among international stakeholders. Gita Gopinath, Chief Economist at the International Monetary Fund (IMF), expressed skepticism about the need for an immediate rate hike by the Reserve Bank of India (RBI), although she noted that such a measure could be necessary if inflation pressures escalate. She also pointed out that India's current artificial intelligence (AI) advancements are not favorable, impacting foreign institutional investor confidence. In a related development, Ceat, a tire manufacturer, is in the process of integrating the value chain of Camso, a recent acquisition, which is expected to enhance its earnings per share by the end of FY28 or early FY29. However, Ceat is facing challenges due to a 20% rise in raw material costs, necessitating a 12% price increase to offset these expenses, with a 6-7% hike already implemented. The company anticipates further price adjustments in the coming months to maintain profitability amid robust demand across its product categories.
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The rising costs of raw materials could lead to increased prices for consumers, affecting affordability and purchasing decisions.
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