India’s domestic production of various primary and secondary commodities is unlikely to keep pace with demand, and import gaps are expected to remain, a report released by S&P Global Platts said on Monday. Also, the demand for a variety of energy as well as non-energy commodities is forecast to outstrip strong gross domestic product (GDP) growth, added the report by Platts, an independent provider of information and benchmark prices for the commodities and energy markets.
The World Bank expects the Indian economy to grow by 7.2% in 2017-18. However, S&P Global Ratings estimate an 8% annual GDP growth forecast for India over the next few years.
The report, titled Make in India: A new window of opportunity for commodities, stated that the Narendra Modi-led government’s initiatives, post May 2014 when his party came into power, has powered the manufacturing sector which in turn will trigger large requirements for oil, gas and other resources. As per Nikkei Manufacturing Purchasing Managers Index, compiled by IHS Markit, India’s manufacturing growth hit a five-year high in March 2017.