According to a report released by S&P Global on Thursday, India is on track to become the world’s third-largest economy by the fiscal year 2030-31, with a projected annual growth rate of 6.7% for this year. The report emphasizes the importance of sustained reforms to enhance business operations, improve logistics, and stimulate private sector investments, which are critical for reducing dependency on public funding.
The report anticipates that equity markets will remain vibrant and competitive due to strong growth potential and improved regulatory frameworks. Since India’s inclusion in major emerging market indexes, foreign investments in Indian government bonds have surged, with further growth expected.
To capitalize on trade opportunities, India must enhance its infrastructure and geopolitical strategies, especially considering its vast coastline. Nearly 90% of India’s trade is conducted via sea, underscoring the necessity for improved port facilities to accommodate rising export and import volumes.
The report also highlights the increasing domestic energy demands India faces and suggests a pivot towards sustainable technologies, such as renewable energy and low-emission fuels. This transition is vital for balancing energy security with the country’s energy transition goals. Moreover, advancements in agriculture through technology and policy reforms are essential to boost infrastructure and productivity, ensuring food security and overall economic stability.
This inaugural study by the S&P Global India Research Chapter was unveiled on Thursday, marking a significant contribution to understanding India’s economic trajectory.
