The Indian Ascendancy: S&P Global’s Insight on India’s March to Global Prominence

August 5, 2023

Key Takeaways

  1. India is well-positioned to become a global superpower, driven by its strategic global involvements and the setting of ambitious targets domestically and internationally.
  2. By balancing high growth and carbon reduction goals, India can provide guidance for other emerging economies toward net-zero emissions.
  3. The development of a robust logistics framework and increased female workforce participation will be critical in transforming India from a services-centric to a manufacturing-led economy.
  4. India’s economic growth will benefit significantly from a strong labor force and a surge in global manufacturing exports.
  5. S&P Global anticipates a double-fold increase in venture capital flowing into Indian startups by 2030, benefitting sectors such as EVs, space technology, AI, drones, robotics, and clean technology.

A Comprehensive Look at India’s Global Ascent

Amid a world reeling under transition and uncertainty, S&P Global, a leading provider of credit ratings, benchmarks, analytics, and workflow solutions, has released a comprehensive research series titled “Look Forward: India’s Moment”. The study articulates how India is in a prime position to capitalize on current global transitions, focusing on opportunities and challenges that lie ahead.

“This latest edition of Look Forward research provides our customers and the market essential intelligence on India, one of the most dynamic and fast-changing countries in the world,” said Martina Cheung, President of S&P Global Ratings and Executive Sponsor of the S&P Global Research Council. She added, “Our analysts have leveraged their deep sector and geographic knowledge, along with S&P Global’s data and analytics, to conduct a comprehensive and multidimensional analysis of the country as it contends with multiple overlapping transitions.”

India’s Role in Resolving Global Challenges

India’s participation is deemed crucial in addressing global issues as countries across varying stages of development grapple with common challenges. While India has set ambitious targets for sustained growth, the path ahead is laden with multifaceted scenarios that necessitate thoughtful decision-making.

The study highlights that India has the opportunity to demonstrate leadership in guiding emerging economies towards achieving net-zero emissions, even as it pursues high growth. To transition from being a “balancing power” to a “leading power,” India will need to skillfully navigate both multilateral and bilateral relationships and affiliations, and nurture trading partnerships in various regions.

Economic Future: Manufacturing and Workforce Development

According to S&P Global, India’s success as a global manufacturing hub will be a decisive test for its economic future. Key to this transformation from a services-dominated economy to a manufacturing-driven one will be the development of a robust logistics framework. Moreover, upskilling workers and encouraging more women to join the workforce will be instrumental in realizing India’s demographic dividend.

India’s Moment: A Snapshot

As per S&P Global’s research, India has shown resilience post-pandemic, achieving a GDP growth of 7.2% in fiscal year 2023. It is projected to grow 6.7% per year from fiscal 2024 to 2031, propelling GDP to $6.7 trillion from $3.4 trillion in fiscal 2023. The anticipated per capita GDP is about $4,500.

India’s short-term economic growth will be bolstered by its labor force of 678.6 million. The research underscores the critical role of increased female workforce participation in future growth, noting that only 24% of women were part of the workforce in 2022.

In addition, the study points out the immense opportunity India has to boost its share of global manufacturing exports. The government plans to raise manufacturing to 25% of GDP by 2025, up from 17.7%.

Furthermore, the share of venture capital inflow into Indian startups is predicted to double by 2030. Emerging verticals such as EVs, space technology, AI, drones, robotics, and clean technology are expected to significantly benefit from this trend.

About S&P Global

S&P Global provides essential intelligence that empowers governments, businesses, and individuals to make informed decisions. With a suite of services that span credit ratings, benchmarks, analytics, and workflow solutions, S&P Global unlocks new opportunities, solves challenges, and accelerates progress for the world. The company’s offerings are sought after by many of the world’s leading organizations to help plan for tomorrow, today.

For more insights from Look Forward: India’s Moment and to read the full report, please visit here.

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