India Economy: S&P Global Predicts Third-Largest Economy Status by FY31

India Economy Projections by S&P Global

Mumbai: India is on track to becoming the third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal, as stated in the S&P Global report released on Thursday.

Private Sector Investment and Growth Rates

The report emphasizes that with an 8.2 per cent growth rate in FY2024, continued reforms are crucial for improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital.

Dynamic Equity Markets and Infrastructure Needs

• Equity markets are expected to remain dynamic and competitive due to strong growth prospects and better regulation.
• Foreign inflows into Indian government bonds have surged since India joined major emerging market indexes, with further growth anticipated.
• India must develop its infrastructure and geopolitical strategies, particularly regarding its extensive coastline.

Energy Security and Agriculture

As energy demands rise, India can look to sustainable technologies, including renewables and low-emission fuels. Balancing energy security with energy transition plans is essential. The agriculture sector must adopt new policies and advanced technologies to improve infrastructure and productivity.

Addressing Infrastructure Challenges

To ensure food security and economic stability, critical infrastructure issues such as irrigation, storage, and supply distribution must be addressed.

The S&P Global India Research Chapter's inaugural study highlights the critical pathways for India in realizing its economic potential.