India Set to Become Third Largest Economy by 2030-31: S&P Global

S&P Global today said that, The Indian economy will grow at 6.7 percent annually between now and 2030-31 or become the third largest economy in the world.

Abhishek Tomar, Head- S&P Global India Leadership Council said, “India’s medium-term prospects are healthy and filled with opportunities in multiple sectors including trade, agriculture, and AI, likely structural reforms and growing energy demands. India is poised for growth, and with a young and dynamic workforce well-positioned to shape the global economic landscape,” 

The economy grew 6.7 percent in the first quarter, buoyed by steady manufacturing and rise in the services economy. In the first edition of its report titled “India Forward: Emerging Perspectives”, the global research firm noted that continued reforms were necessary to boost private investment and reduce reliance on public capital. India’s capex surge has largely been driven by public capex, which is expected to grow in double digits in FY25 as well.

Few Quotes from the Report

“Addressing the twin challenges of air pollution and climate change will help deliver a high-quality, high-growth economy to the world’s largest democracy,”

“The equity markets are expected to stay dynamic and competitive due to strong growth prospects and better regulation. Foreign inflows into Indian government bonds have surged since the country joined major emerging market indexes, with further growth anticipated”.

“Equally important is the limiting of food inflation by addressing structural bottlenecks and climate risks, as well as fostering conditions for supportive monetary policy.”