‘India’s growth resilient’: S&P reaffirms GDP outlook despite global turbulence; why growth story is strong
[content split=25]
The report highlighted that reforms, infrastructure development, and process improvements have strengthened India’s position, giving it a competitive edge over developed countries.“Amid global market volatility, India’s growth is resilient and remains the world’s fastest-growing major economy, with its GDP forecast to continue growing 6.5% in fiscal 2025-26,” it said, adding that the country’s forecast is influenced by both domestic strengths and global headwinds.“India is likely to encourage more participation in global trade, which offers increasing gains in economic growth, capital attraction, and to generate employment opportunities.” The report further noted that reforms are needed at central, state, and bureaucratic levels to build a more coordinated system.The private credit sector is also set for strong expansion, as traditional banks leave a financing gap, supported by domestic insolvency frameworks.
Though risks exist, the limited connection to the broader financial system offers some protection.India could expand its share in global shipbuilding over the next decade.
However, reaching the top five shipbuilding nations by 2047 will be challenging, as the country currently accounts for less than 1% of the market.Atul Arya, executive sponsor of the India Research Chapter and chief energy strategist at S&P Global Commodity Insights, said, “Frameworks that accelerate infrastructure development, promote inclusive reforms, foster private investments, diversify trade and build resilient supply chains can help India seize opportunities.
This edition of India Forward shines light on multidimensional and multi-stakeholder approaches that will strengthen India’s growing claim as a global economic and geopolitical powerhouse, even as the horizons continue to shift.”The report also said India is set to become the second-largest market for datacenter electricity demand in the Asia-Pacific region by 2028, overtaking Japan and Australia, driven by heavy investment in digital infrastructure.In energy, India aims to localise its nuclear value chain and use its thorium reserves to boost domestic capacity and technology transfer, with reforms expected in 2026-27.
The country’s electric vehicle drive is also gathering pace, alongside growing interest in biofuels and green hydrogen, particularly for heavy transport.
