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India to become third-largest economy by 2030-31: S&P Global

2024-11-07

India is on course to become the world's third-largest economy by fiscal 2030-31, driven by a projected annual growth rate of 6.7 per cent, according to S&P Global’s inaugural study, India Forward: Emerging Perspectives. The report highlights India’s impressive GDP growth of 8.2 per cent in FY 2024, surpassing the government’s earlier estimate of 7.3 per cent.

Abhishek Tomar, Head-S&P Global India Leadership Council, stated, “India’s medium-term outlook is vibrant, with opportunities across trade, agriculture, AI, and energy. A young, dynamic workforce positions the country to shape the global economy.”

India’s 8.2 per cent growth in FY 2024 reaffirms its status as the fastest-growing large economy. Sustained reforms will be essential to enhance logistics, business efficiency, and private investment while reducing reliance on public funds. Foreign investments in government bonds have surged, driven by India's inclusion in key emerging market indexes, with further growth anticipated.

With 90% of India’s trade conducted via sea, infrastructure development, especially along the coastline, will be crucial to handle increasing exports and bulk imports. Robust geopolitical strategies will be necessary to maximise trade benefits.

India's growing energy demand will require a balance between energy security and the adoption of sustainable technologies, including renewables and low-emission fuels. Agriculture will benefit from new technologies and policies aimed at improving irrigation, storage, and supply chains to enhance food security and stability.

The report emphasises AI’s potential to accelerate economic growth, suggesting public-private partnerships to replicate India’s digital infrastructure success.

India Forward was prepared by S&P Global in collaboration with CRISIL, bringing together local expertise and global insights. The study reflects India’s promising future, with continued reforms and strategic investments positioning it as a key player on the global stage.