India to Become World’s 3rd-Largest Economy by 2030, Projects S&P Report

Mumbai: India is set to become the third-largest global economy by the fiscal year 2030-31, driven by a projected annual growth rate of 6.7%, according to a report from S&P Global.

The report highlighted India’s status as the fastest-growing major economy, achieving a remarkable 8.2% growth rate in FY24, surpassing the government’s earlier forecast of 7.3%.

The report, titled “India Forward”, highlighted the importance of infrastructure development and strategic geopolitical moves in maximising trade opportunities. Abhishek Tomar, Head of the S&P Global India Leadership Council and Chief Data Officer for S&P Global Market Intelligence, remarked that India’s medium-term outlook is promising, with significant opportunities in sectors such as trade, agriculture, and artificial intelligence (AI). He further noted that the country’s young and dynamic workforce is well-positioned to drive future growth.

Key reforms are necessary to enhance business operations, improve logistics, and attract private sector investments, the report added. S&P also predicted continued dynamism in India’s equity markets, spurred by regulatory improvements and robust growth prospects.

Foreign investments in Indian government bonds have increased since India’s inclusion in major emerging market indices, with further inflows expected. The report called for enhanced port infrastructure to manage India’s increasing seaborne trade, as around 90% of the nation’s trade is conducted via sea routes.

Sustainable energy technologies, including renewables and low-emission fuels, will play a key role in balancing energy security and environmental goals. The agriculture sector must also adopt advanced technologies and policies to improve productivity and address infrastructure gaps in irrigation, storage, and distribution.

Additionally, the report emphasised the potential for AI-driven growth, encouraging public-private partnerships to replicate the success of India’s digital infrastructure.

Prime Minister Narendra Modi recently stated that India is becoming a key player in the global supply chain, with 1.4 billion citizens working towards making the country the world’s third-largest economy.