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

Amidst global market volatility, India’s growth remains resilient, with its GDP forecast to continue growing at 6.5% in fiscal 2025–26, according to the latest report from S&P Global India Research Chapter, titled "India Forward: Shifting Horizons."

The report emphasises that India’s story is one of ambition, innovation, and resilience. The country's outlook is shaped by the interaction of its domestic buffers and external challenges. India’s approach to managing unfolding global uncertainties will be crucial in determining its future course.

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.”

Some of the key findings of the report include:

India's growth performance, compared to that of advanced economies, indicates that while past external shocks have caused short-term difficulties for India, they have not disrupted the country’s long-term growth path. Significantly, India has succeeded in increasing its growth advantage over developed countries by implementing economic reforms, developing infrastructure, and improving processes, stated the report.

India plans to localise its nuclear value chain and utilise its extensive thorium reserves to boost domestic capacity development and technology transfer. Legislative reforms to liberalise the sector and implement a transparent and simplified liability framework are expected in 2026–27.

The report highlights that India has an opportunity to grow its share of the global shipbuilding market in the next decade. Although the country’s ambitions are clearly outlined, India requires a precise strategy to rank among the top five shipbuilding nations by 2047, a difficult goal considering it currently holds less than 1% of the global market, according to the report.

As electric vehicles become more popular and viable in India, biofuels remain crucial for existing fleets, while green hydrogen is set to play a key role in heavy-duty transport. Government initiatives are driving manufacturing growth and expanding charging infrastructure, with states accelerating the adoption of EVS in India, per the report.