NEW YORK, September 19. /TASS/. India may become the world's third largest economy by 2030-2031 as a result of accelerated GDP growth and implementation of economic reforms in the country, according to a forecast from S&P Global.
With India's GDP growth projected at 8.2% in the current fiscal year 2024-2025, the country's economy could become the third largest in the world by 2030-2031, provided that reforms critical to improving business operations and logistics, stimulating private sector investment, and reducing dependence on public capital continue, S&P Global said.
India's ability to join the world's top three economies is underpinned by the country's vibrant and competitive equity markets, thanks to strong growth prospects and better regulation. It has also benefited from a sharp increase in foreign investment in its government bonds since it joined the major emerging market indices, the report said.
According to analysts, to achieve this, India would need robust port infrastructure, as nearly 90% of the South Asian nation's trade is carried out by sea. It would also need to embrace modern technologies, including renewable energy and low-emission fuels, to balance energy security with its plans to transition to a green economy.
Earlier, Deputy Governor of the Reserve Bank of India Michael Debabrata Patra said his country is showing high economic growth rates and has the potential to become the world's largest economy by 2060.