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India set to become world’s third largest economy by 2030 : S&P Global Ratings

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NEW DELHI : According to S&P Global Ratings, India is projected to become the world’s third largest economy by 2030. The rating agency predicts that India’s GDP growth will reach 7% in the fiscal year 2026-27. In its Global Credit Outlook 2024, S&P forecasts a GDP growth of 6.4% in the fiscal year 2023-24, compared to 7.2% in the previous financial year.
The growth rate is expected to remain at 6.4% in the next fiscal year (2024-25) before rising to 6.9% and eventually reaching 7% in 2026-27.

According to a PTI report, S&P sees India reaching 7% in the fiscal year 2026-27.

S&P believes that India is on course to become the third largest economy by 2030 and expects it to be the fastest-growing major economy in the next three years. Currently, India ranks fifth in the world economy, following the US, China, Germany, and Japan.

The rating agency highlights the importance of India becoming a global manufacturing hub, which presents a significant opportunity for the country. It emphasizes the need for a robust logistics framework to transform India from a services-dominated economy into a manufacturing-dominated one.

To unlock the potential of the labor market, S&P suggests upskilling workers and increasing female participation in the workforce. The agency believes that success in these areas will enable India to fully utilize its demographic dividend.

S&P also points out that India’s booming domestic digital market could contribute to the expansion of the high-growth startup ecosystem, particularly in financial and consumer technology, over the next decade.

Furthermore, S&P sees potential growth in India’s automotive sector, citing infrastructure development, increased investment, and innovation as contributing factors.
S&P’s outlook comes days after India saw its GDP for the September quarter grow at a faster than expected rate of 7.6%.

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