India to become world's third largest economy by 2030: S&P Global Ratings - Hindustan Times
close_game
close_game

India to become world's third largest economy by 2030: S&P Global Ratings

ByVaishnawi Sinha
Dec 05, 2023 02:44 PM IST

India is on track to become the third largest economy in the world, after the US and China, by the year 2030, according to S&P Global Ratings report.

India is projected to become the world's third-largest economy by 2030, with an estimated 7 per cent GDP growth in the fiscal year 2026-27, according to rating S&P Global Ratings released on Tuesday.

India's GDP is expected to grow larger than that of Japan and Germany's according to a report(Representative image)
India's GDP is expected to grow larger than that of Japan and Germany's according to a report(Representative image)

As of 2023, India is the world's fifth-largest economy, trailing the US, China, Germany and Japan. The Global Credit Outlook Report 2024 of S&P stated that India's GDP growth at the end of the current financial year is estimated to be around 6.4 per cent.

Unlock exclusive access to the latest news on India's general elections, only on the HT App. Download Now! Download Now!

The firm estimated in its report that the GDP growth rate will remain stable at 6.4 per cent for the next financial year (2024-25), and will climb to 6.9 per cent the year after that (2025-26). The percentage will further climb to 7 in 2026-27.

"A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity. Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one," the report said.

S&P further said the GDP growth of India will be hinged on the utilisation of its labour workforce and the involvement of women in different sectors. "Success in these two areas will enable India to realize its demographic dividend," it said.

The significant growth recorded in the domestic digital sector of India has the potential to drive up the economy in the coming years. According to S&P, India's presence in the automotive sector "is positioned for development, leveraging infrastructure, investment, and innovation."

The United States is currently placed at the top with a GDP of $25.5 trillion, while China is in the second position with a GDP of $18 trillion. S&P has predicted that India's GDP will be at $7.3 trillion in 2030, surpassing Japan and Germany.

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Get latest news on Education along with Board Exam, Competitive Exam and Exam Result at Hindustan Times. Also get latest Job updates on Employment News
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, May 24, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On