Eeshna Dashottar, Pune
With a projected yearly growing rate of 6.7 per cent this fiscal, India is set to emerge as the third-largest economy by 2030-31. This was projected by the S&P Global’s report titled ‘India Forward Emerging Perspectives’. The report was published on September 19, 2024.
The major projections are highlighted in the report along with several measures suggested by the researchers and analysts which will help shape India’s economic future. The report also discusses risks and opportunities that the country may face as it grows to become the third-largest economy by 2030.
Pointing to the collaborative perspective of India, the report first elaborates on the country’s efforts to work with other countries on economic matters such as tackling global challenges, making efforts towards climate risks, maintaining trade relationships, etc. It talked about points India could focus on while working with advanced economies and emerging economies. It also covers points on structural reforms, private sector outputs, internalized capital markets, etc.
The report also made sector-specific projections for India through its findings. As per the report, it is expected that the total petroleum product demand will continue to rise in the next decade. Equity markets may witness continued progress and competition owing to increasing growth prospects and better regulations.
The report gave some key measures that must be taken into consideration for India’s economic growth. As 90 per cent of India’s trade is maritime, the report suggested the development of a robust port infrastructure that is required to cater to the rising exports and bulk imports. The need for sustainable technologies for the country’s rising energy demands was also suggested. A major focus was given to the need for India to take an upper hand in global governance on AI which holds great economic potential.
The growth rate for 2024 stands at 8.2. At such a pace of growth, the report mentions, reforms are crucial to keep coming for the purpose of enhancing business transactions and logistics, improving investments in private sector and minimising the dependence on public capital.
India continues to be one of the fastest-growing economies in the world. India’s GDP grew by 8.2 per cent during 2023-24. Global organisations have been revising their growth projections for this year owing to India’s economic growth pace. The International Monetary Fund (IMF) had earlier projected a 6.5 per cent growth rate for 2024, further revising it to 6.8 and again to 7 per cent. With such projections and expectations in place, it is awaited to see how India matches up to these points for overall economic growth.