States » West » BYEPosted at: Sep 30 2026 7:24PM


India set for 7 pc growth as Energy and global risks test resilience: S&P Global

Mumbai, Sept 30 (UNI) India's economy is expected to grow by about 7.0 percent in fiscal 2026 to 2027 after expanding 7.8 percent in 2025 to 2026, with the country's ability to sustain momentum increasingly linked to infrastructure, capital markets, energy security and resilience against global uncertainty, according to a new report by S and P Global.
The annual India Research Chapter report titled India Forward Reimagining Growth said the 7.8 percent expansion in 2025 to 2026 significantly exceeded expectations despite high US tariffs and global uncertainty. It said the expected moderation to around 7.0 percent in the current fiscal would place greater emphasis on converting India's macroeconomic resilience into sustained economic momentum.
Yann Le Pallec, President of S and P Global Ratings and Chairman of the Board for Crisil, said India has a significant opportunity to turn macroeconomic resilience into sustained momentum. He said the next stage could be supported by further physical infrastructure development, competitive federalism, deeper capital markets and stronger financial intermediation.
Energy security is among the major challenges identified in the report. Dave Ernsberger, President of S and P Global Energy, said disruption to supplies through the Strait of Hormuz had severely tested energy security in high growth Asian economies. India relies heavily on the route for oil, refined products, gas and associated supply chains. According to the report, the disruption resulted in reductions of 20 percent in crude supplies, 12 percent in LPG and 16 percent in LNG.
The report said more than half of India's crude imports pass through the Strait of Hormuz, placing the country among those most exposed to an effective closure of the waterway. It called for diversification of supply sources and strategic reserves covering crude oil, refined products and gas wherever feasible. Integrated storage and diversified supply chains were also identified as important components of longer term energy resilience.
S and P Global said India's geopolitical approach was also evolving. The report expects India to continue positioning itself as a leading power rather than a balancing power, with its next geopolitical phase likely to involve compartmentalised cooperation with major powers alongside broader engagement with emerging economies.
The study also examined the potential role of the digital rupee in India's financial infrastructure. It said the digital rupee could emerge as the fourth layer of the country's digital public infrastructure by allowing rules to be embedded directly into money. In an increasingly tokenised global economy, the report said it could help keep cross border business transactions and remittances anchored in sovereign currency rather than shifting towards foreign currency stablecoins.
India's capital markets have expanded substantially in size and depth over the past decade, according to the report. As of June 30, 2026, the country's equity market had an investable market capitalisation of USD 2.03 trillion. The report noted India's combination of economic growth, an expanding listed equity universe and companies ranging from emerging domestic businesses to globally competitive firms. At the same time, it found that a majority of actively managed Indian funds had underperformed their respective benchmarks across multiple market cycles and economic conditions.
Energy transition was another major area examined in the report. It said India's next phase would be influenced both by climate ambitions and the need to strengthen resilience against external disruptions. The Strait of Hormuz crisis, it said, had reinforced the case for greater self reliance. For the power sector, the challenge would be to develop a system capable of supplying clean, reliable and affordable electricity on a large scale.
The report also examined India's E20 programme, saying the Strait of Hormuz crisis had helped move it beyond a fuel blending mandate towards a broader energy security option. Its sustainable expansion, however, would depend on ecosystem readiness and sustainable feedstock availability while meeting rising demand.
India Forward Reimagining Growth contains seven original thought leadership articles prepared by analytical teams from S and P Global and Crisil. The articles examine economic growth, geopolitics, energy resilience, the digital rupee, capital markets, the power transition and the E20 programme as India responds to changing domestic and international conditions.
The India Research Chapter is a cross divisional initiative of S and P Global and Crisil under the S and P Global India Leadership Council. It combines local expertise, global perspectives and capabilities from across the organisations to produce research focused on India.
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