India On Track To Become Third-largest Economy By 2030: S&P Global Report

India is on track to become the world's third-largest economy by 2030-31, with a projected annual growth rate of 6.7 per cent for the current fiscal year, according to a report released by S&P Global on Thursday. 

The report mentioned that the Indian economy is expected to grow at an even higher rate of 8.2 per cent in FY2024, stressing the crucial role of continued reforms to streamline business processes, improve logistics, and attract private investment. These reforms are expected to reduce India's reliance on public capital and further boost its economic momentum.

S&P Global pointed out that India's equity markets are likely to remain competitive and dynamic due to strong growth prospects and enhanced regulatory frameworks. Foreign investments in Indian government bonds have surged following the country’s inclusion in major emerging market indexes, with expectations for continued inflows. This surge reflects growing confidence in India's economic stability and long-term growth potential.

The report also stresses the importance of infrastructure development, particularly in ports and logistics, to support India's trade ambitions. Nearly 90 per cent of the country’s trade is seaborne, making robust port infrastructure essential for managing increasing exports and imports of bulk commodities. The report urged the country to develop a strategic approach to its extensive coastline, aligning geopolitical and economic strategies to maximise trade benefits.

India's rising domestic energy demands were also noted in the report, calling for a balance between energy security and the adoption of sustainable technologies such as renewable energy and low-emission fuels. Additionally, agriculture remains a key sector that will rely on advanced technologies and policy reforms to boost infrastructure and productivity. Addressing challenges like irrigation, storage, and distribution will be crucial to ensuring food security and economic stability.