New Delhi: India will become world’s third largest economy by 2023. US based credit rating agency, S&P Global Ratings predicted this.
‘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 in its Global Credit Outlook 2024.
India currently is the fifth largest economy in the world behind the US, China, Germany and Japan. The US is currently on the top of the list with a GDP of $25.5 trillion, representing a quarter of the world’s GDP. China is in the second spot with a GDP of approximately $18 trillion, nearly 17.9 per cent of the world GDP. Japan follows as the third-largest economy with a GDP of $4.2 trillion, and Germany is fourth with a GDP of $4 trillion.
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The agency said that India’s GDP growth may reach 7% in 2026-27 fiscal year. S&P saw a 6.4% GDP growth in the fiscal year through March 2024 (2023-24) as compared to 7.2% in the previous financial year. The growth rate will remain at 6.4% in the next fiscal (2024-25) before climbing to 6.9% in the next and 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,’ it said.
Earlier, S&P Global Market Intelligence had said that India‘s nominal GDP may rise from $3.5 trillion in 2022 to $7.3 trillion by 2030. Thee Indian GDP may exceed Japanese GDP by 2030, making India the second largest economy in the Asia-Pacific region.
Last week, Ministry of Statistics and Programme Implementation data showed that the economic growth in months of July, August and September was 7.6%. That means, India’s real GDP in Q2 of FY24 is 7.6% more than what it was in the same three months of FY23. The Indian economy had expanded by 7.8% in April-June and 6.2% in July-September 2022.
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