S&P Global Ratings said on Dec 5 that India will be the world's third-largest economy by 2030, but the big test for the country would be to unlock the huge opportunity and become the next major global manufacturing center
The US rating agency expects India to be the fastest-growing major economy over the next three years, with GDP growth reaching 7 percent by 2026, up from the current fiscal forecast of 6.4 percent. India's economy grew by 7.2 percent in the fiscal year ending March 2023 in 2022-23. India's GDP grew by 7.8 percent in June and 7.6 percent in September.
India will become the third-largest economy by 2030, and we expect it to be the fastest-growing economy over the next three years. The key test is whether India can become the next major global manufacturing hub, a huge opportunity. Developing a strong logistics framework is key to transforming India from a service-based economy to a manufacturing-based economy,
S&P said in its report Global Credit Outlook 2024: New Risks, New Playbook and India is the 2022-2023. With a GDP of USD 3.73 trillion at the end of 2016, it is now the fifth largest economy in the world after the United States, China, Germany and Japan.
The International Monetary Fund (IMF) has projected that India will be a $5 trillion economy and the third-largest GDP by 2027-28.
S&P said that unlocking the potential of the labor market depends largely on improving the skills of workers and increasing the participation of women in the workforce. Success in these two areas will enable India to realize its demographic dividend.