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.
“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.
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