Emerging Perspectives: Introduction

India is becoming a global leader during a period of geopolitical reordering and is in a unique position of being a bridge for advanced and emerging economies.

It aspires to collaborate to tackle shared global challenges, achieving inclusive economic growth, addressing growing climate risk, reconfiguring trade relationships, navigating global security conflicts and adapting to new technologies. The country’s path forward will serve as a guide for other economies.

For advanced economies, engagement with India can offer signals on working in a world that seeks a new paradigm in climate finance, trade agreements and resource utilization. For emerging economies, India’s approach could be an indicator for adopting diplomatic, regulatory and operational positions through their next stage of economic growth.

In this inaugural edition of India Forward, experts led by S&P Global’s India Research Chapter highlighted eight themes to watch as India strengthens its claim as the world’s bridge power.

India is on track to become the world’s third-largest economy by 2030 and accelerating structural reforms will be key to unlocking private investment. Promisingly, the HSBC India Purchasing Managers’ Index, compiled by S&P Global Market Intelligence, shows that India has consistently seen the highest private sector output expansion worldwide over the past year.

The internalization of India’s capital markets, supported by the inclusion of Indian government bonds in major emerging market indexes, is an encouraging first step. Indian equity markets will remain active by regional standards, assisted by a supportive domestic regulatory environment.

It will be critical for India to lead global governance on technologies such as generative AI, which can be harnessed for economic growth. India can aim to replicate the success of the digital infrastructure public-private partnership model and S&P Global Ratings data shows significant public investment commitments into its AI sector.

India is experiencing a multidimensional, interlinked economic and energy transition. Its growth story will rely on executing an energy strategy that balances security, affordability and adoption of material net-zero technologies.

S&P Global Commodity Insights data shows that India’s total petroleum product demand will continue rising in the next decade. At the same time, its cross-sectoral realities require energy transition-specific policies and technologies to be net-zero by 2070.

The multidimensional transition is also ushering in transition in agriculture, as noted by CRISIL. In the next decade, India is prepared to adopt techniques and reforms to address climate change, ensure food supplies and improve farm incomes.

Beyond the domestic landscape, India must capitalize on its over 7,500-km coastline — using investment, trade and geopolitical strategies — to augment its commerce. More than 90% of India’s trade is conducted via sea, comparable to the trade dynamics of South Korea, China and Vietnam.

As India navigates domestic risks and opportunities amid geopolitical competition, it can meet its aspirations by integrating local solutions and global best practices. With continued openness to regional and global collaboration, India can create the right competitive conditions for inclusive growth and sustainable national and global outcomes.