India Poised to Become Third-Largest Economy by 2030: S&P

• ByStartupStory     |    December 5, 2023

According to S&P Global Ratings, India is poised to become the world’s third-largest economy by 2030, with a projected GDP growth reaching 7 per cent in the fiscal year 2026-27. The Global Credit Outlook 2024 report by S&P estimates a GDP growth of 6.4 per cent in the fiscal year ending March 2024 (2023-24), compared to the 7.2 per cent recorded in the previous financial year. The growth rate is expected to remain at 6.4 per cent in the subsequent fiscal year (2024-25), followed by a climb to 6.9 per cent in the subsequent year and a forecasted 7 per cent in 2026-27.

S&P Global Ratings expressed confidence in India’s economic trajectory, stating, “India is set to become the third-largest economy by 2030, and we expect it will be the fastest growing major economy in the next three years.” Currently ranked as the fifth-largest economy globally, behind the US, China, Germany, and Japan, India faces the challenge of transforming into a prominent global manufacturing hub. The report emphasizes the crucial role of developing a robust logistics framework in this transition from a services-dominated economy to a manufacturing-oriented one.

The success of India’s economic aspirations, particularly in unlocking the potential of the labor market, hinges on upskilling workers and increasing female participation in the workforce. S&P Global Ratings underscores that achievements in these areas will enable India to harness its demographic dividend effectively.

The report also highlights the potential of India’s domestic digital market to fuel expansion in the country’s high-growth startup ecosystem over the next decade, particularly in financial and consumer technology sectors. S&P envisions a prosperous future for India, provided it addresses critical challenges, seizes opportunities, and sustains its momentum toward becoming a major global economic player.

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