While global economic growth faced stagnation for the second consecutive month in September, India continued to shine as a beacon of economic resilience, expanding at one of the strongest rates in nearly 13 years.
According to a report by S&P Global Market Intelligence, this comes as the private sector output in developed markets, including manufacturing and services, faced a mild contraction.
According to the Asia Credit Outlook 2023 released by S&P Global Market Intelligence, the Indian economy will be 3rd largest economy by 2030. The Indian economy is growing and will give huge opportunities for medium to long term if the projected trajectory holds India will supersede Japan and Germany to become the world’s third-largest economy by 2030. As per the S&P Outlook India’s GDP is poised to touch USD 7.3 trillion by 2030.
Currently, India is the 5th largest economy in the world at USD 3.7 trillion worth of GDP in 2023-24. It replaced the U.K. as the 5th largest economy in 2022.
As per S&P Global Market Intelligence report, the strength of India’s economy shone brightly as it continued to lead among major emerging economies, displaying exceptional growth momentum.
India was the only one among these economies to accelerate its growth from August, with output expanding at one of the strongest rates in just under 13 years. As per the report the Indian economy has shown sustained growth during the 2023 calendar year.
India’s robust expansion was bolstered by a substantial increase in new business, supported by favorable demand conditions and positive market dynamics. Both manufacturing output and services activity in India contributed to its impressive growth trajectory.
In contrast, Russia and China experienced more modest expansions, with both seeing a slowdown in growth from August.
Price pressures eased slightly for emerging market firms due to softer service sector cost inflation, although solid demand growth enabled businesses to pass on higher costs at an accelerated rate. Consequently, emerging market selling price inflation reached its highest level in 14 months, offering optimism for firms’ profits.
Developed market profit margins faced pressure from a faster rate of input cost increases while selling price inflation dipped in September.
However, developed market selling prices continued to rise at a rate well above the long-run average, despite the challenge of higher prices on clients’ demand in an environment of high-interest rates and softening global economic conditions.
As India sustains its growth, the contrast between emerging and developed markets highlights the challenges and opportunities presented by the ever-evolving global economic landscape.
(with inputs from ANI)
