India to remain world's fastest-growing major economy despite global uncertainty

New Delhi, Sep 17 (IANS) Amid global market volatility, India’s growth is resilient and the country remains the world’s fastest-growing major economy, with its GDP forecast to continue growing 6.5 per cent this fiscal (FY26), S&P Global said on Wednesday.

The positive outlook is being framed by the interplay of the nation's domestic buffers and external challenges.

"India's growth performance with that of advanced economies shows that while past external shocks have caused short-term challenges for India, they have not derailed the country’s long-term growth trajectory," S&P Global said in its report.

Moreover, the country has managed to enhance its growth advantage over developed countries by pursuing economic reforms, infrastructure development and process improvements.

According to the report, the nation is likely to encourage more participation in global trade, which offers increasing gains in economic growth, capital attraction, and to generation of employment opportunities.

Its strategy has become increasingly integrated, and the economy needs reforming, especially in terms of centre, state and bureaucratic alignment.

At the same time, the private credit industry is also poised for strong growth, driven by a significant financing gap left by traditional lenders and strengthened by domestic insolvency frameworks.

Additionally, the aim to localise the nuclear value chain and use its vast thorium reserves to enhance domestic capacity building and technology transfer will pave the path for growth ahead.

The report also highlighted India's potential to increase its share of the global shipbuilding market over the next decade.

"While the country’s ambitions are well defined, India needs a clear strategy to become a top-five shipbuilding nation by 2047, a challenging journey from less than 1 per cent global market share today," the report noted.

India’s digital landscape is undergoing an unprecedented transformation, which is driving significant investments in digital infrastructure, such as data centres, and supporting the expanding digital economy.

The nation is expected to become the second-largest market for data centers’ electricity demand in the Asia-Pacific region over the next two years, surpassing Japan and Australia, the report stated.

--IANS

aps/na