Indian economy to be world's third-largest by 2030: S&P report

India is well on course to become the third-largest economy in the world by 2030, provided the country succeeds in seizing the 'immense opportunity' to become a major global manufacturing hub, global rating agency S&P stated in a report.

S&P, however, said India’s evolution into the next major global manufacturing hub is critical to achieving this success.

This also depends on India, currently the fastest growing major economy, keeps the target growth rates in the coming three years, according to the US-based rating agency.

India’s economy grew 7.2 per cent in April-March 2022-23 fiscal ended March 2023, and is expected to grow 6.4 per cent in the current fiscal, after recording GDP expansion of 7.8 per cent and 7.6 per cent, respectively, in the April-June and July-September quarters. 

India’s GDP is expected to grow 7 per cent in the 2025-26 fiscal, according to the S&P Global report.

"India is set to become the third-largest economy by 2030, and we expect it will be the fastest-growing major economy in the next three years," S&P said.

S&P report stresses the importance of a strong logistics network for India to emerge a global manufacturing hub. 

"A strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one," it said.

Besides, S&P said India's thriving domestic digital market and the start-up ecosystem can fuel India’s economic growth.

S&P recommends improving the skills of workers and boosting female participation in the workforce to unleash the potential of the labour market for India to reap the demographic dividend.