India Poised to Become Third-Largest Economy by 2030

India is projected to become the third-largest economy by 2030-31 with a growth rate of 6.7% this fiscal. Key drivers include continued reforms, robust infrastructure, strong equity markets, and enhanced foreign inflows. Renewable technologies and advanced agriculture policies are essential for sustainable development and food security.

India is on course to become the world's third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7% this fiscal year, according to a report by S&P Global released on Thursday.

The report highlights that with an 8.2% growth rate expected in FY2024, ongoing reforms are critical to enhancing business transactions, logistics, boosting private sector investments, and reducing dependency on public capital.

Equity markets are poised to remain dynamic and competitive due to robust growth prospects and better regulation, while foreign inflows into Indian government bonds have increased since the country joined major emerging market indices, with further growth anticipated.

For maximizing trade benefits, the 'India Forward: Emerging Perspectives' report emphasizes the necessity of developing infrastructure and geopolitical strategies, especially in relation to the extensive coastline.

With nearly 90% of India's trade being seaborne, substantial port infrastructure is essential to handle rising exports and bulk commodity imports.

Rising domestic energy demands necessitate the adoption of sustainable technologies, including renewables and low-emission fuels, to balance energy security with transition plans. Advanced technologies and new policies in agriculture are vital for improving infrastructure and productivity.

Key infrastructure challenges such as irrigation, storage, and supply distribution must be addressed to ensure food security and economic stability.

The inaugural study by the S&P Global India Research Chapter was unveiled on Thursday.

(With inputs from agencies.)