India's GDP is expected to increase from 6.4% in 2023 to 7% in 2026, making it the third-largest economy by 2030, according to a forecast published by S&P Global. After the US, China, Germany, and Japan, India presently has the fifth-largest economy in the world.
"We see India reaching 7 per cent in 2026-27 fiscal...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," S&P said.
S&P's "Global Credit Outlook 2024" predicts that India would rise as the world's fastest-growing emerging market. The crucial task, though, is figuring out whether the nation can develop into the next significant global manufacturing hub.
The report further highlighted that India's growth is projected to be 6.4% in the fiscal year 2023-24, a decline from the 7.2% recorded in the preceding financial year. The rating agency anticipates that the growth rate will persist at 6.4% in 2024-25 before experiencing an increase to 6.9% in the subsequent year and reaching 7% in 2026-27.
"A strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one," it said.
The rating agency highlights a significant opportunity for India by highlighting the significance of India rising as a global manufacturing base. It emphasises how crucial it is to have a solid logistics infrastructure in order to change India's economy from one that is centred on services to one that is dominated by manufacturing.