S&P Predicts India To Be The 3rd Largest Economy By 2030

According to global rating agency S&P, India will become the world's third largest economy by 2030. Rating agency S&P has estimated the country's GDP growth to reach 7 percent in the financial year 2026-27.

Highlights of S&P's report:

• S&P, in its 'Global Credit Outlook 2024' report, has projected GDP growth at 6.4 per cent by financial year 2023-24, compared to 7.2 per cent in the previous financial year.
• India has a huge opportunity to become the next big global manufacturing hub. For this, it will be important to develop a strong logistics infrastructure to transform India from a service-dominant economy to a manufacturing-dominant economy.
• India's rapidly growing domestic digital market could fuel the expansion of high-growth startups, especially in financial and consumer technology, over the next decade.
• India is ready for growth, infrastructure, investment and innovation in the automotive sector.
• Estimates of GDP growth rate:
  • GDP growth rate 6.4 percent in financial year 2024-25
  • GDP growth rate 6.9 percent in financial year 2025-26
  • GDP growth rate 7.0 percent in financial year 2026-27
• Achieving the Indian labor market potential will largely depend on upskilling workers and increasing female participation in the workforce.

Present situation of India:

• Currently India is the fifth largest economy in the world. India comes after the US, China, Germany and Japan.

Global rating agency Standard & Poor's (S&P):

• S&P Global Ratings is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities.
• S&P is considered the largest of the three major credit-rating agencies, which also include Moody's Investors Service and Fitch Ratings.
• S&P's main office is located at 55 Water Street in Lower Manhattan, New York City.