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India set to become 3rd largest economy by 2030 – S&P

India will become the world’s third-largest economy by 2030, S&P Global Ratings said on Tuesday. India’s gross domestic product (GDP) is expected to grow 7% in 2026-27. The country at present is the fifth largest economy in the world behind the US, China, Germany, and Japan.

In “Global Credit Outlook 2024,” the S&P said India will be the fastest-emerging market in the world. Yet, its most important test will be if the country can become the next big world manufacturing hub.

S&P said India’s growth is expected to be at 6.4% in 2023-24 compared to 7.2% in the previous financial year. It said the growth rates will remain at 6.4% in 2024-25 before climbing to 6.9% in the next and 7% in 2026-27, the rating agency said.

India set to become 3rd largest economy by 2030 - S&P

“We see India touching 7% in the 2026-27 fiscal. India is set to become the third largest economy by 2030 and we are expecting it will be the fastest growing major economy in the next three years,” S&P said.

S&P said a booming domestic digital market could also fuel expansion in India’s high-growth startup ecosystem during the next decade, especially in financial and consumer technology.

“A strong logistics framework will be the key to transforming India from a services-dominated economy into a manufacturing-dominant one,” it said. Unlocking the labor market potential will largely depend upon enhancing workers’ skills level and increasing the participation of women in the workforce.

According to S&P, in the automotive sector, India is positioned for development, leveraging infrastructure, investment, and innovation.

Also Read: Spotify Announces Workforce Reduction Amid Slow Economic Growth

Shalini Mishra

Shalini Mishra is an accomplished editor at Unique News Online, with an MBA in Banking and Finance. Renowned for integrating her financial expertise into dynamic journalism, she excels in delivering insightful, well-researched news, particularly in economic and financial domains.

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