A recent S&P Global report predicts India will ascend to the world’s third largest economy by 2030, overtaking its current fifth position behind the US, China, Germany, and Japan. The country’s GDP is expected to grow from 6.4% in 2023 to 7% in 2026, making it the fastest-growing major economy in the next three years. The “Global Credit Outlook 2024” from S&P forecasts India as the leading emerging market in terms of growth. However, the country faces the challenge of transitioning into a major global manufacturing hub.
The report also points out the potential regional shift in economic growth from China to South and Southeast Asia. China’s GDP growth is expected to decelerate to 4.6% in 2024 from 5.4% in 2023, with slight fluctuations in the following years. Meanwhile, Vietnam, the Philippines, and Indonesia are also projected to show significant growth rates.
In the fiscal year 2023-24, India’s GDP growth is projected at 6.4%, a decrease from the 7.2% seen in the previous year. The growth rate is anticipated to remain at 6.4% in 2024-25, then rise to 6.9% in 2025-26, and finally hit 7% in 2026-27. The report emphasizes the need for a robust logistics framework to support India’s shift from a service-based to a manufacturing-dominated economy.
