India to Stay World’s Fastest-Growing Major Economy Despite Global Volatility: S&P Global

New Delhi- Despite global market uncertainty, India’s economy remains resilient and is expected to retain its position as the world’s fastest-growing major economy, with GDP projected to expand by 6.5 per cent in FY26, according to S&P Global.

The report noted that India’s growth momentum is supported by strong domestic fundamentals that help offset external challenges.

“India’s growth performance compared with advanced economies shows that while external shocks have caused short-term disruptions, they have not derailed the country’s long-term growth path,” S&P Global said.

The report credited India’s sustained advantage to economic reforms, infrastructure development, and improvements in business processes. It added that greater integration into global trade could further accelerate growth, attract capital, and generate jobs.

The analysis also highlighted the need for deeper structural reforms, particularly in aligning the Centre, states, and bureaucratic processes.

On the financial front, India’s private credit sector is expected to grow rapidly, filling the financing gap left by traditional lenders and benefiting from strengthened domestic insolvency frameworks.

Looking ahead, the report pointed to India’s ambitions in sectors such as nuclear energy, shipbuilding, and digital infrastructure:

• Plans to localise the nuclear value chain and leverage thorium reserves could boost capacity building and technology transfer.

• India aims to raise its share in the global shipbuilding market, targeting a top-five position by 2047—up from less than 1 per cent today.

• The country’s digital transformation is drawing major investment in data centres, with India projected to become the second-largest market for data centre electricity demand in the Asia-Pacific region within two years, overtaking Japan and Australia.

With inputs from IANS