S&P Global Ratings has projected India’s growth rate for the fiscal year 2023-24 to be 6.4%, a slight dip from the previous year’s 7.2%. The agency expects this growth to continue at 6.4% in the following fiscal year (2024-25), rising to 6.9% in the subsequent year and further increasing to 7% in 2026-27.
The rating agency envisions India becoming the world’s third-largest economy by 2030, forecasting it to be the fastest-growing major economy in the next three years. The shift from a service-oriented economy to a manufacturing-focused one is contingent on establishing a robust logistics framework. Harnessing the potential of the labor market is closely tied to upskilling workers and increasing female workforce participation, with S&P emphasizing the importance of success in these areas to leverage India’s demographic dividend. Additionally, S&P highlights the potential for substantial growth in India’s high-growth startup ecosystem, particularly in financial and consumer technology, driven by a growing domestic digital market in the next decade.
