India is on course to become the world’s third-largest economy by fiscal year 2030-31, according to S&P Global’s latest report, “India Forward Emerging Perspectives.” The report projects an annual growth rate of 6.7%, driven by strong domestic demand and economic reforms.
To sustain this growth, S&P Global emphasized the need for continued reforms to streamline business operations, enhance logistics, attract private sector investment, and reduce dependency on public funds. The report also highlighted the importance of developing infrastructure and strengthening geopolitical strategies, particularly focusing on India’s extensive coastline to maximize trade benefits. With around 90% of India’s trade being maritime, the agency stressed the need for modern port infrastructure to support rising exports and bulk commodity imports.
Additionally, S&P Global noted the growing foreign investment in Indian government bonds, spurred by India’s inclusion in major emerging market indices. The Indian equity market is expected to remain dynamic and competitive, bolstered by strong growth prospects and improved regulatory frameworks.
The report also addressed the rising domestic energy demand, urging the country to develop sustainable technologies such as renewables and low-emission fuels to ensure energy security while advancing its energy transition plans. In the agricultural sector, the focus should be on adopting advanced technologies and implementing policies to improve irrigation, storage, and supply distribution to secure food resources and stabilize the economy.
The report also highlighted the potential of artificial intelligence to spur economic growth and suggested fostering public-private partnerships to leverage the success of India’s digital infrastructure.
India has consistently been the fastest-growing major economy, with GDP growth rates of 8.2% in 2023-24, 7.2% in 2022-23, and 8.7% in 2021-22, according to official data. Other global agencies have similarly raised their growth forecasts for India. In July, the International Monetary Fund (IMF) revised its 2024 growth projections for India from 6.8% to 7%, citing robust domestic demand and a growing working-age population as key drivers of this optimistic outlook.
