NEW DELHI– Despite global market volatility, India is set to remain the world’s fastest-growing major economy, with gross domestic product expected to expand 6.5 percent in fiscal year 2026, according to a new report by S&P Global released Wednesday.
The agency said India’s growth resilience is underpinned by strong domestic buffers, even as external headwinds pose challenges. “India’s growth performance compared with advanced economies shows that while past external shocks have caused short-term hurdles, they have not derailed the country’s long-term growth trajectory,” S&P Global noted.
The report credited India’s reform agenda, infrastructure development, and process improvements for widening its growth advantage over developed nations. It also projected stronger integration into global trade, which could boost growth, attract capital, and create more jobs.
Private credit markets are poised for rapid expansion, the report added, with domestic insolvency frameworks creating space for new lenders to step in where traditional banks leave gaps. At the same time, India’s focus on localizing the nuclear value chain — including tapping vast thorium reserves — is expected to support capacity building and technology transfer.
S&P Global also highlighted India’s ambitions to grow its presence in the global shipbuilding industry. While the country currently accounts for less than 1 percent of global market share, it has set a target to become one of the top five shipbuilding nations by 2047.
On the digital front, India is undergoing a dramatic transformation, with surging investments in data centers and infrastructure driving expansion of the digital economy. The country is projected to become the second-largest market for data center electricity demand in the Asia-Pacific region within two years, surpassing Japan and Australia. (Source: IANS)
