India poised to become world's third-largest economy by 2030: S&P
India is on its way to becoming the world's third-largest economy by 2030, surpassing both Japan and Germany, as reported by S&P Global Ratings. The report forecasts that India's GDP growth will hit 7% in the 2026-27 fiscal year. At present, India holds the position of the fifth largest economy, having overtaken the United Kingdom in 2022.
Challenges and opportunities for India's economic growth
The main challenge for India will be to transform itself into a global manufacturing powerhouse. The report states, "A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity." The report further adds, "Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one." To achieve this, India must focus on upskilling its workforce and increasing female participation in the labor market.
Digital market and automotive sector experiencing significant growth in India
S&P's report also highlights the potential of India's rapidly growing domestic digital market in driving expansion in the high-growth start-up ecosystem, particularly in financial and consumer technology. Furthermore, India's automotive sector is set for growth, supported by infrastructure, investment, and innovation. Recent data from the Ministry of Statistics and Programme Implementation revealed that India's economic growth in July-September reached 7.6%, with a significant increase in activity in the manufacturing and construction sectors.
