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India to rank third in global economy by year-end: S&P
ECONOMY & POLICY

India to rank third in global economy by year-end: S&P

According to a report released by S&P Global Ratings, it was projected that by 2030, India would become the world's third-largest economy, experiencing an estimated 7 per cent GDP growth in the fiscal year 2026-27.

As of 2023, India held the position of the world's fifth-largest economy, following the United States, China, Germany, and Japan. In the Global Credit Outlook Report 2024, S&P indicated that India's GDP growth at the conclusion of the on-going financial year is anticipated to be approximately 6.4 per cent.

The report from the firm suggested a consistent GDP growth rate of 6.4 per cent for the upcoming financial year (2024-25), projecting a further increase to 6.9 per cent the following year (2025-26). Subsequently, the percentage was anticipated to rise to 7 in 2026-27.

The report emphasised a critical challenge for India, stating, "A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity. Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one."

S&P additionally asserted that India's GDP growth would hinge on the effective utilization of its labour force and the increased involvement of women in various sectors. The report emphasised, "Success in these two areas will enable India to realize its demographic dividend."

The notable growth observed in India's domestic digital sector was identified as having the potential to boost the economy in the upcoming years. S&P highlighted that India's presence in the automotive sector is positioned for development, leveraging infrastructure, investment, and innovation."

Currently, the United States holds the top position with a GDP of $ 25.5 trillion, followed by China in the second position with a GDP of $ 18 trillion. S&P's prediction suggested that India's GDP would reach $ 7.3 trillion in 2030, surpassing Japan and Germany.

According to a report released by S&P Global Ratings, it was projected that by 2030, India would become the world's third-largest economy, experiencing an estimated 7 per cent GDP growth in the fiscal year 2026-27. As of 2023, India held the position of the world's fifth-largest economy, following the United States, China, Germany, and Japan. In the Global Credit Outlook Report 2024, S&P indicated that India's GDP growth at the conclusion of the on-going financial year is anticipated to be approximately 6.4 per cent. The report from the firm suggested a consistent GDP growth rate of 6.4 per cent for the upcoming financial year (2024-25), projecting a further increase to 6.9 per cent the following year (2025-26). Subsequently, the percentage was anticipated to rise to 7 in 2026-27. The report emphasised a critical challenge for India, stating, A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity. Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one. S&P additionally asserted that India's GDP growth would hinge on the effective utilization of its labour force and the increased involvement of women in various sectors. The report emphasised, Success in these two areas will enable India to realize its demographic dividend. The notable growth observed in India's domestic digital sector was identified as having the potential to boost the economy in the upcoming years. S&P highlighted that India's presence in the automotive sector is positioned for development, leveraging infrastructure, investment, and innovation. Currently, the United States holds the top position with a GDP of $ 25.5 trillion, followed by China in the second position with a GDP of $ 18 trillion. S&P's prediction suggested that India's GDP would reach $ 7.3 trillion in 2030, surpassing Japan and Germany.

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