India is on course to become the world's third-largest economy by 2030-31, fueled by a projected annual growth rate of 6.7 per cent for the current fiscal year, according to a report released by S&P Global on Thursday. The report, titled India Forward: Emerging Perspectives, noted that India is expected to register an impressive growth rate of 8.2 per cent in FY24. However, it noted that continued reforms are essential to enhance business operations, streamline logistics, encourage private sector investment, and reduce dependency on public capital expenditure.
S&P Global highlighted the dynamism of India's equity markets, attributing their growth to strong economic prospects and improved regulatory frameworks. The report also pointed to a surge in foreign investments in Indian government bonds, driven by the country's inclusion in major emerging market indices, with further growth anticipated.
To fully capitalise on trade opportunities, India must prioritise infrastructure development and strengthen its geopolitical strategies, especially concerning its vast coastline, the report stated.
With nearly 90 per cent of India's trade conducted via sea routes, the country needs robust port infrastructure to manage the growing volume of exports and bulk commodity imports.
Addressing India's rising energy demands, the report recommended a focus on sustainable technologies, including renewable energy sources and low-emission fuels, as part of the nation's energy transition. It underscored the need for balancing energy security with these transition plans.
In agriculture, S&P Global's report called for advanced technologies and policy reforms to boost infrastructure and productivity. Key areas such as irrigation, storage, and supply distribution must be addressed to ensure food security and sustain economic stability.
The inaugural edition of the S&P Global India Research Chapter was unveiled at an event in New Delhi on Thursday, marking the launch of this comprehensive analysis of India's economic trajectory.