India’s rising global trade role may boost capital inflows and jobs, but sustained growth needs stronger coordination between central, state governments, and bureaucratic institutions
New Delhi
Despite global economic uncertainty, India continues to stand out as the world’s fastest-growing major economy, according to S&P Global. The agency projects India’s GDP to expand by 6.5 percent in the ongoing fiscal year (FY26), driven by strong domestic factors and steady reforms.
The report highlighted that past global shocks have only caused short-term hurdles, without derailing India’s long-term growth path. Economic reforms, large-scale infrastructure projects, and process improvements have helped India strengthen its advantage over advanced economies.
India’s growing participation in global trade is expected to further boost capital inflows, job creation, and competitiveness. However, the report stresses that better coordination among the central government, state administrations, and bureaucratic institutions is crucial for sustaining momentum.
The private credit sector is another area showing promise. With traditional lenders unable to meet growing demands, private credit is stepping in to fill the gap, supported by stronger insolvency frameworks. Meanwhile, efforts to localise the nuclear value chain and leverage thorium reserves are expected to strengthen domestic technology and capacity building.
S&P Global also noted India’s ambitions in shipbuilding. Currently holding less than one percent of the global market share, the country aims to become a top-five player by 2047. Achieving this target, however, requires a clear long-term strategy.
On the digital front, India is experiencing a rapid transformation. Heavy investments in data centres and infrastructure are driving the digital economy forward. Within two years, India is projected to become the second-largest market in Asia-Pacific for data centre electricity demand, overtaking Japan and Australia.