As the global geopolitical and macroeconomic horizon shifts in unprecedented ways, India’s outlook for 2025 and beyond 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. The promise of strategic initiatives, supported by structural reforms, will inspire confidence. While external shocks pose challenges, India’s diversified economy and adaptive policymaking offer a sound foundation for navigating these headwinds. India remains the world’s fastest-growing major economy, with its GDP forecast to continue growing 6.5% in fiscal 2025–26, according to Crisil.

India’s continued growth will require both debt and equity financing, and its private credit market is expanding to support domestic investments. In the past few years, India’s private credit market has grown from a young upstart into a thriving asset class, according to S&P Global Ratings. Global investors are expected to continue flocking to India while domestic investors increase their reliance on private credit.

Seeking trade stability has emerged as a global policy priority. India’s approach to trade is evolving as it seeks to leverage its economy's strengths while reconfiguring it to be future-ready. S&P Global Market Intelligence data shows that India is less dependent on trade for growth than other Asian economies. The path forward will involve maximizing the integration of Indian goods and services in the global economy while promoting investment opportunities to spur domestic manufacturing. A regionally competitive labor force supports these ambitions.

As the technology sector expands rapidly, India is well positioned to lead innovations that power global markets and support the AI revolution. The transformation of its domestic digital landscape will continue to drive significant investments in infrastructure. According to S&P Global Commodity Insights estimates, India is expected to become the second-largest market for datacenter electricity demand in Asia-Pacific by 2028, surpassing Japan and Australia.

Complementing these macro interventions, India’s sectoral approaches are preparing the country to respond to global changes with purposeful intent. India is seeking to develop its nuclear energy sector with refreshed policies and commitments — a decadeslong key civilian and strategic priority. As the country aims to localize its nuclear value chain, legislative reforms to liberalize the sector and introduce a transparent and simplified liability framework are expected by 2026–27.

To prepare its cities for growing urbanization and climate challenges, India is shaping its mobility landscape by taking a multimodal and multifuel approach, with supply and demand interventions. S&P Global Mobility notes that a shift to sustainable transportation in India is crucial for cleaner air, energy security, domestic manufacturing and green jobs. India’s 2024 electric vehicle policies are helping to enable such a future while facilitating the country’s growth as a global auto manufacturing hub.

India’s shipbuilding industry also aims to scale global heights, targeting a position among the top five shipbuilding nations by 2047 through global alliances and strategic technology transfers. With higher capital allocation, India’s competitiveness should significantly improve, allowing it to increase its market share in global shipbuilding from a low base, according to S&P Global Commodity Insights.

India’s approach to these sectors reflects a whole-systems mindset that is conscious of growing sustainably, ensuring energy security, maximizing the demographic dividend and supporting its geopolitical ambitions. India’s journey continues to be marked by optimism and will require proactive problem-solving to address emerging challenges.

Frameworks that accelerate infrastructure development, promote inclusive reforms, foster private investments, diversify trade and build resilient supply chains can help India seize opportunities. This multidimensional and multistakeholder approach will strengthen India’s growing claim as a global economic and geopolitical powerhouse, even as the horizons continue to shift.