India will be third-largest economy by 2030-31 with projected annual growth of 6.7: S&P Global

Positive growth projection: India is well poised to become the third-largest economy by fiscal 2030-31, led by a robust projected annual growth rate of 6.7, credit rating agency S&P Global said in its report “India Forward Emerging Perspectives”.

Along with its projections, the credit rating agency has put forth few measures to propel growth of the economy.

As per the report, in an endeavor to maintain the growth momentum, continued reforms are vital to improve business transactions and logistics, boosting private sector investment, and reducing reliance on public capital. The credit rating agency says it anticipates that the Indian equity market will remain dynamic and competitive due to strong growth prospects and better regulation.

As per S&P, foreign inflows into Indian government bonds have seen an uptick after the country joined major emerging market indexes. This trend, as per the report, is anticipated to grow.

The rating agency further suggested that India must develop infrastructure and geopolitical strategies, particularly regarding its extensive coastline, to maximise trade benefits.

In its suggestion, S&P said that there was a need for a strong port infrastructure to match rising exports and bulk commodities imports because about 90 per cent of India's trade is maritime.

The report also highlighted the rising domestic energy demands, adding that the country needs to develop sustainable technologies, including renewables and low-emission fuels, balancing energy security with its energy transition plans.

"Agriculture will depend on advanced technologies and new policies to improve infrastructure and productivity. Their is a need to address critical infrastructure issues such as irrigation, storage, and supply distribution to ensure food security and economic stability," the report added.
The use of Al will boost economic growth of the economy and lead to new opportunities for public-private partnerships to replicate the success of India's digital infrastructure, the credit rating agency suggested.