September saw stagnation in global economic growth for the second month in a row, but India remained a shining example of economic resilience, growing at one of the fastest rates in almost 13 years. This occurs at the same time that developed market private sector output—including manufacturing and services—saw a slight decline, according to a report published by S&P Global Market Intelligence.
S&P Global Market Intelligence’s Asia Credit Outlook 2023 projects that by 2030, India’s economy will rank third in terms of size. In the medium to long term, the expanding Indian economy will present numerous opportunities.
If the predicted course is followed, India’s economy will surpass that of Germany and Japan to become the third largest in the world by 2030. India’s GDP is predicted by S&P Outlook to reach USD 7.3 trillion by 2030.
With a GDP of USD 3.7 trillion in 2023–24, India has the fifth-largest economy in the world right now. In 2022, it surpassed the UK to become the fifth-largest economy. According to a report by S&P Global Market Intelligence, India’s economy exhibited remarkable strength, maintaining its position as the top emerging economy with remarkable growth momentum.
Out of all these economies, India’s growth picked up speed starting in August, and its output grew at one of the fastest rates in less than 13 years. The report claims that throughout the year 2023, the Indian economy grew steadily. A significant rise in new business, fueled by favorable market dynamics and favorable demand conditions, contributed to India’s strong expansion.
The remarkable growth trajectory of India can be attributed to both its manufacturing and services sectors. China and Russia, on the other hand, saw slower growth starting in August and saw more moderate expansions. Due to softer service sector cost inflation, price pressures for emerging market companies somewhat decreased, but businesses were still able to pass on higher costs more quickly thanks to strong demand growth.
As a result, rising market selling price inflation hit its highest point in 14 months, raising hopes for company profits.
While selling price inflation decreased in September, developed market profit margins were under pressure from input cost increases that were occurring at a faster pace.
Nevertheless, despite the challenge of higher prices on clients’ demand in an environment of high interest rates and softening global economic conditions, developed market selling prices continued to rise at a rate well above the long-run average.
India’s continued growth underscores the opportunities and challenges brought about by the constantly changing global economic landscape, as the gap between emerging and developed markets widens.
