India has an impressive economic track record, underpinned by a large, growing population with rising disposable income. Real GDP growth averaged 8.3% in the past three years (FY2021-FY2023)¹, and is forecast to average 6.7% in the next three years (2024-26)² - well ahead of all other major global economies, including China.

At the same time, economic stability is supported by low external debt, which has actually been declining relative to the size of GDP, and sizeable FX reserves, which have more than doubled over the past decade.

Over the past decade, the Indian government implemented several painful, but necessary, reforms to put India on a more stable economic footing whilst also reducing the cost of doing business. Going forward, given political continuity following recent elections, the overall direction of economic policies should remain pro-business and investor-friendly.

Geopolitically, India looks well placed to benefit from increasing US-China rivalry, which will likely drive increasing US-India alignment and co-operation in multiple spheres. India can also capitalise on global companies’ increasing efforts to reduce supply-chain reliance on China.

India is actively seeking to power its growth through cleaner energy sources . Globally, it already ranks as having the 4th largest wind capacity and the 5th largest solar capacity. However, there is an ambitious target of adding 500 GW of installed renewable capacity by 2030, while cutting carbon intensity by 45% over the same time³ – to achieve this will require huge outlays and create sizeable investment opportunities too.

Arguably the single most standout area of policy-driven progress and source of growth enablement in India of late has been the rapid expansion of digital infrastructure. Built on the formidable ‘Aadhar’ national biometric ID system, increasing digitalisation is delivering notable productivity gains and opening up many exciting business opportunities.