S&P Global has forecasted that by 2030, India is poised to become the world’s third-largest economy. Currently ranked fifth globally, India’s economy stands at over $3.7 trillion. The United States leads the global ranking with an economy of around $27 trillion, followed by China at $17.7 trillion, Germany at $4.4 trillion, and Japan at $4.2 trillion.
In its “Global Credit Outlook 2024,” S&P Global anticipates India’s GDP growth to be at 6.4 percent for the fiscal year ending March 2024 (2023-24), a slight decrease from 7.2 percent in the previous fiscal year. The growth rate is expected to maintain at 6.4 percent in 2024-25 and then increase to 6.9 percent in the following year, eventually reaching 7 percent in 2026-27. “We see India reaching 7 percent in the 2026-27 fiscal,” stated the agency.
S&P Global highlights that India is on track to be the fastest-growing major economy over the next three years. India’s journey to the third position in the global economic rankings underscores its significant growth trajectory.
The agency points out a key challenge for India: transforming into a major global manufacturing hub. Developing a robust logistics infrastructure is crucial for this transition from a predominantly services-based economy to one dominated by manufacturing.
Another critical factor in realizing India’s economic potential is unlocking the labour market. This involves upskilling workers and increasing female participation in the workforce. Successfully addressing these areas is vital for India to capitalize on its demographic dividend.
Additionally, India’s booming domestic digital market is expected to drive growth in the high-growth startup ecosystem over the next decade, particularly in financial and consumer technology sectors.
The automotive sector in India is also set for growth, with focus areas being infrastructure development, investment, and innovation. This sector’s growth will contribute significantly to India’s overall economic expansion.
