India is more resilient against global shocks as its large domestic market provides a buffer: S&P Global

The S&P Global India Research Chapter’s “India Forward: Shifting Horizons” study finds:

• Despite shifting global trade policies, India continues to be the world’s fastest-growing major economy with a GDP growth of 6.5% in FY 2026
• Global investors are expected to continue flocking to India while domestic investors increase their reliance on private credit. 
• India is expected to become the second-largest market for datacenter electricity demand in Asia-Pacific by 2028, surpassing Japan and Australia
• India’s shipbuilding industry aims to scale global heights, targeting a position among the top five shipbuilding nations by 2047

Mumbai, September 17, 2025: S&P Global India Research Chapter’s latest report “India Forward: Shifting Horizons” highlights that India’s story is one of ambition, innovation and resilience. India’s outlook is being framed by the interplay of its domestic buffers and external challenges. India’s strategy for navigating unfolding global uncertainties will be decisive in shaping its path forward. 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. 

Some of the key findings of the report are:

• 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. Importantly, India has managed to enhance its growth advantage over developed countries by pursuing economic reforms, infrastructure development and process improvements. (See “India’s growth realigns with shifting global trends”)
• India is likely to encourage more participation in global trade, which offers increasing gains in economic growth, capital attraction and to generate employment opportunities. India’s strategy is becoming increasingly integrated, its economy needs reforming, especially in terms of center, state and bureaucratic alignment. (See “India’s evolving approach to foreign trade”)
• India’s private credit industry is poised for strong growth, driven by a significant financing gap left by traditional lenders and strengthened by domestic insolvency frameworks. The limited interconnectedness between private credit and the rest of the Indian financial sector will likely protect against the buildup of broader systemic risks, though spillover effects could compound in a credit downcycle. (See “India’s private credit market is coming of age”)
• India aims to localize its nuclear value chain and use its vast thorium reserves to enhance domestic capacity building and technology transfer. Legislative reforms to liberalize the sector and introduce a transparent and simplified liability framework are anticipated in 2026–27. (See “What are the drivers and prospects for India’s Nuclear Energy Mission?”)
• India has an opportunity 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% global market share today. (See “Will India’s shipbuilding industry seize this global moment?”)
• India’s digital landscape is undergoing an unprecedented transformation, which is driving significant investments in digital infrastructure, such as datacenters, and supporting the expanding digital economy. India is expected to become the second- largest market for datacenters’ electricity demand in the Asia-Pacific region over the next two years, surpassing Japan and Australia. (See “Will India become a leading global datacenter market?”)
• While electric vehicles in India become more popular and viable, biofuels are vital for existing fleets, and green hydrogen is emerging for heavy-duty transport. Government initiatives are boosting manufacturing and expanding charging infrastructure as states accelerate EV adoption in India. (See “Green mobility in India: A multimodal path forward”)

Atul Arya, Executive Sponsor of the India Research Chapter and the 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 multistakeholder approaches that will strengthen India’s growing claim as a global economic and geopolitical powerhouse, even as the horizons continue to shift.”

“India Forward” is prepared by S&P Global and Crisil’s cross-divisional India Research Chapter, an initiative of the S&P Global India Leadership Council. This Chapter provides distinct thought leadership on India by combining local expertise, global perspectives and its full suite of capabilities.

Access “India Forward: Shifting Horizons” here. 

Media contact:

Saumya Bhushan
S&P Global
saumya.bhushan@spglobal.com
+91-9910353007

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