9AUGUST 2025GERMAN GIANT RENK LAUNCHES INDIA-BASED PRODUCTION FACILITYINDIA'S ECONOMY STAYS RESILIENT AMID GLOBAL TARIFF UNCERTAINTY, SAYS RBIGerman drive and transmission systems market leader RENK has commissioned its first Indian production plant, reiterating its allegiance to the 'Make in India' and 'Atmanirbhar Bharat' initiative. The Ambernath plant in Maharashtra is a major strategic step in the group's international development and backing of India's increasing defence and industrial aspirations.India maintained a high degree of economic resilience supported by good macroeconomic fundamentals despite the rising Asia-wide trade uncertainties and pressure on tariff issues as indicated in the latest State of the Economy published by the Reserve Bank of India.The RBI observed that the aggregate demand will be helped by the process of cooling down inflationary pressure, promising results of kharif crops, government expenditure front loading, and a boost in financial situation. In the report, there was a strategic need in India to enhance trade Spanning 30,000 square meters, Ambernath has state-of-the-art manufacturing and test facilities. The factory will make sophisticated gearboxes and mobility products mainly for armored fighting vehicles and other defense platforms. These would include key systems according to the Indian Ministry of Defence's modernization thrust like the Future Infantry Combat Vehicle (FICV) and Future Ready Combat Vehicle (FRCV) programs.By being indigenous in its production, RENK's factory is sure to enhance India's supply chain capability in the heavy industry and defence sector. The company also wants to establish the plant as a local products export hub for the global market.RENK CEO Susanne Wiegand highlighted the firm's Indian market approach saying the investment will catalyse job creation, enable innovation through domestic collaborations, and propel the country towards self-sufficiency. "This facility is a strategic leap forward in our dream to provide state-of-the-art technologies while being part of India's industrial and defence ecosystem," she added.With one of the fastest-growing defence expenditures in the world, India is the ideal growth market for RENK. RENK's initiatives will be critical in driving the indigenization of the nation's defence and longer-term economic growth. relationship in the backdrop of geo-economic fragmentation and supply chain realignment."Amid rising trade uncertainties and geo-economic fragmentation, building more resilient trade partnerships presents a strategic opportunity for India to deepen its integration with global value chains," the RBI said.The central bank also highlighted the necessity of an increasing domestic investment in infrastructure and structure adjustment to enhance productivity and competitiveness. Although changes in trade policy such as new regimes of import tariffs as of August 1, 2025, are a burden to the global mood, financial markets are reassuringly cautious.In conjunction to the opinion of the RBI, the Asian Development Bank (ADB) is again forecasting a rise in GDP of India in 2025 to 6.5 and 2026 to 6.7 drawing its support to hold up on enactment by solid residential demand and monetary acceleration. The inflation is projected to hit the target of 3.8 percent in the year 2025 and 4.0 percent in 2026.A previous Morgan Stanley report indicated a possibility of the Indian economy becoming the third-largest in the world by the year 2028, and break into $10.6 trillion by 2035.
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