'India's macro challenge for decade ahead is to achieve sustained high, stable and inclusive growth'

The macro challenge in the decade ahead will be to achieve sustained high, stable and inclusive growth, which has thus far been elusive, S&P Global said in a report titled India's Moment.

A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity.

Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one, the report said.

Unlocking labor market potential will largely depend upon upskilling workers and increasing female participation in the workforce. 

Success in these two areas will shape India's ability to realise its demographic dividend, particularly with the population projected to grow over the next decade, the report said.

"A booming domestic digital market could also fuel expansion in India's high-growth startup ecosystem in the decade ahead, especially in financial technology and consumer technology," it added.

In the automotive sector, India is poised for growth, building on infrastructure, investment, innovation and inclusiveness.

Countries across the development and political spectrum are adopting pragmatism to navigate the heightened risks and expanded opportunities of the next decade. 

Following this trend, India will cooperate across spheres of mutual interest and compete where national interests collide. 

To rise to this moment, India has set ambitious targets for itself -- both in the domestic arena and on the global stage, the report said.

At home, India's realised and unrealised potential will continue to reflect the successes and prospects of its diverse states and their relationship with the constitutionally strong Central government.

On the global stage, India hopes to be a guiding force for emerging economies on the journey toward net-zero emissions. 

Developing countries will be watching as India tries to balance the goals of achieving high growth and of reducing the carbon intensity of its economy.