India's economic growth remains resilient, according to S&P Global's assessment
India is poised for significant growth in various sectors over the next decade, according to a new report titled 'India Forward' authored by Suyash Gupta. The report discusses opportunities for India's economic growth and provides recommendations for improving the framework for private investment and promoting digital infrastructure.
Atul Arya, Executive Sponsor of the India Research Chapter and Chief Energy Strategist at S&P Global Commodity Insights, emphasises the importance of frameworks that accelerate infrastructure development, promote inclusive reforms, foster private investments, diversify trade, and build resilient supply chains to help India seize these opportunities.
One of the key areas of focus is India's shipbuilding industry. The report predicts that India can increase its share in the global shipbuilding market over the next decade. However, reaching the target of being among the top five shipbuilding nations by 2047 will be challenging, as India currently holds less than one percent share.
The report also notes that India is expected to become the second-largest market for datacenter electricity demand in the Asia-Pacific region by 2028, overtaking Japan and Australia. This growth is driven by the increasing digitalisation of the economy and the expanding IT sector.
In the energy sector, India aims to localise its nuclear value chain and use its vast thorium reserves to enhance domestic capacity building and technology transfer. Reforms in India's nuclear energy sector are expected around 2026-27, aiming to make the rules more transparent and attract investment.
India's growth story remains intact despite short-term global economic shocks, according to the report by S&P Global India Research. The report highlights that India has strengthened its position through reforms, infrastructure development, and improvements in processes.
The private credit industry in India is set for strong expansion due to a financing gap left by traditional banks. Domestic insolvency frameworks are helping to strengthen the private credit sector, but risks still exist.
Another area of focus is India's push towards electric vehicles (EVs). The electric vehicle push is gathering pace, supported by government initiatives in manufacturing and charging networks. While EV adoption is growing, biofuels and green hydrogen are also becoming important, especially for heavy transport in India.
In conclusion, India's economic growth is expected to continue at a robust pace, with the country poised to make significant strides in various sectors. The report underscores the need for continued reforms, infrastructure development, and private investment to capitalise on these opportunities and achieve India's ambitious goals.
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