India's geopolitical position can give tailwinds for economic growth: S&P Global Ratings

CHENNAI:

India's economic growth efforts could get the tailwinds from its geopolitical position, said S&P Global Ratings in a report on the country's quest for stable and high economic growth.

"Geopolitics can potentially provide considerable tailwinds for India’s growth efforts. The country is in a good geopolitical position, which will help it benefit from supply chain diversification and reshoring. This will likely bolster other growth-enhancing strengths, particularly competitiveness," the report said. 

In the same vein, the report added that the, geopolitical volatility can be a challenge. 

"India is pursuing a pragmatic approach, cooperating and competing to serve its national interest. This means it is navigating changing partnerships and an evolving landscape. Deglobalisation and protectionist measures will also create some headwinds for exports. Trade partnerships could help to mitigate some of these effects," the report notes. 

According to S&P Global Ratings, the macro challenge for India in the upcoming decade is to turn traditionally uneven growth into a high and stable trend. Given structural differences with East Asian economies, India will need to follow its own unique path. 

Capital accumulation will drive India's economy toward this desirable path, with the government and, increasingly, the private sector investing in infrastructure and manufacturing. 

Digital infrastructure is another potential driver of high growth. 

"Success will ultimately depend on India's ability to reap its demographic dividend; increase labour force participation, including upskilling; boost private investment, with structural reforms in land, logistics and labour; and increase competitiveness, driven by foreign direct investment," the report said. 


INDIA    WEST BENGAL    KOLKATA   
INDIA    NEW DELHI    NEW DELHI   
INDIA    MAHARASHTRA    Nagpur   
WORLD    Kuwait    Kuwait City   
WORLD    Kuwait    Kuwait City   
TRIPURA    WEST TRIPURA    AGARTALA   
WORLD    Kuwait    Kuwait City   
TRIPURA    WEST TRIPURA    AGARTALA