India is on track to become the world's third-largest economy by 2030, according to a report by S&P Global. Currently ranked fifth, with an economy exceeding $3.7 trillion, India's nominal GDP is forecasted to surge from $3.5 trillion in 2022 to an impressive $7.3 trillion by 2030.
S&P Global anticipates that India will be the fastest-growing major economy over the next three years. The rapid expansion is in line with Prime Minister Narendra Modi's confidence in India's economic prowess. In a recent address, he expressed assurance that India would soon be among the top three largest economies globally.
Reasons Behind Swift Growth
A pivotal factor in India's economic ascent will be its ability to evolve into a significant global manufacturing hub. The report highlights the need for a robust logistics framework to shift India from a service-oriented to a manufacturing-dominated economy. Success in this transition hinges on upskilling workers and increasing female workforce participation, unlocking India's demographic dividend.
The booming domestic digital market is expected to drive expansion in India's high-growth startup ecosystem, particularly in financial and consumer technology, over the next decade. In the automotive sector, India is well-positioned for growth, bolstered by infrastructure development, increased investment, and innovation.
The report also points out that India, along with other countries like Vietnam, could benefit from the reconfiguration of global supply chains. Strong and stable trade ties with the United States make India an attractive prospect in this context.
S&P Global projects India's economic growth at 6.4% for the current fiscal year, surpassing previous estimates. While the growth rate for FY25 remains at 6.4%, it is slightly lower than earlier projections. Forecasts for FY26 and FY27 are optimistic, with expected growth rates of 6.9% and 7%, respectively. Overall, the report paints a promising picture of India's economic trajectory, highlighting key areas for development and success in the coming years.
