S&P Global reports India to become 3rd -largest economy by FY30-31

By Anjali Sharma

NEW YORK – S&P Global in a report issued on Friday projected that India is on track to become the third-largest economy by fiscal 2030-31, driven by a robust projected annual growth rate of 6.7 per cent

India has emerged as the fastest-growing large economy at an 8.2 per cent growth rate in FY24, significantly exceeding the government’s earlier estimate of 7.3 per cent, the report said.

According to the report, Infrastructure development and geopolitical strategies will play an important role in maximising trade benefits.

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,”.

Tomar added that India is poised for growth, and with a young and dynamic workforce well-positioned to shape.

According to the report, titled “India Forward”, continued reforms are crucial to improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital. The equity markets are expected to stay dynamic and competitive due to strong growth prospects and better regulation.

The report stated that foreign inflows into Indian government bonds have surged since the country joined major emerging market indexes, with further growth anticipated.

“To maximise trade benefits, India must develop infrastructure and geopolitical strategies, particularly regarding its extensive coastline. Nearly 90 per cent of India’s trade is seaborne, necessitating robust port infrastructure to manage increasing exports and bulk commodity imports,” it noted.

It stressed that India can further look to sustainable technologies, including renewables and low-emission fuels balancing energy security with its energy transition plans. Agriculture will rely on advanced technologies and new policies to improve infrastructure and productivity.

“The need is to address critical infrastructure issues such as irrigation, storage, and supply distribution to ensure food security and economic stability,” said the report.

It added that leveraging AI can boost economic growth, with opportunities for public-private partnerships to replicate the success of India’s digital infrastructure.

Prime Minister Narendra Modi said this week that India is becoming a major stakeholder in the global supply chain and this growing capacity is the foundation of its economic growth.

He said over 140 crore citizens are working with the resolve of making India the third-largest economy in the world.