NEW DELHI: India is poised to achieve the status of the third-largest economy by the fiscal year 2030-31, propelled by a robust projected annual growth rate of 6.7 percent, as outlined in a recent report by credit rating agency S&P Global titled “India Forward Emerging Perspectives”. The report not only highlights this optimistic projection but also suggests essential measures to sustain economic growth.

S&P Global's analysis indicates that maintaining the momentum of economic growth will require continued reforms aimed at enhancing business transactions and logistics. The report underlines the importance of boosting private sector investment while simultaneously reducing dependence on public capital. Furthermore, it anticipates that the Indian equity market will remain dynamic and competitive, bolstered by strong growth prospects and improved regulatory frameworks. Notably, foreign inflows into Indian government bonds have surged since the country joined major emerging market indices, a trend expected to continue.

To fully leverage its potential, S&P Global recommends that India evolves its infrastructure and geopolitical strategies, particularly concerning its extensive coastline. This development is crucial for maximising trade benefits, as approximately 90 per cent of India's trade is maritime. The agency emphasises the need for robust port infrastructure to accommodate rising exports and bulk commodities imports.

Additionally, the report addresses India's increasing domestic energy demands. It advocates for the development of sustainable technologies, including renewable energy sources and low-emission fuels, to balance energy security with ongoing energy transition plans. The agricultural sector is also highlighted as needing advanced technologies and new policies to enhance infrastructure and productivity. Addressing critical issues such as irrigation, storage, and supply distribution is vital for ensuring food security and economic stability.

S&P Global further stated that leveraging artificial intelligence (AI) will significantly boost India's economic growth. The integration of AI presents opportunities for public-private partnerships that can replicate the successes achieved in India's digital infrastructure.

India's GDP has shown impressive growth, expanding by 8.2 per cent during the financial year 2023-24, thus maintaining its position as the fastest-growing major economy globally. Historical data reveals that the economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. This consistent upward trajectory has prompted numerous global rating agencies and multilateral organisations to revise their growth forecasts for India positively.

In July, the International Monetary Fund (IMF) revised India's growth projections for 2024 from 6.8 per cent to 7 per cent, reinforcing India's reputation as the fastest-growing economy among emerging markets and developing economies. The IMF attributes this robust growth to strong domestic demand and a rising working-age population.

Hence, as India gears up for its ambitious economic future, the insights provided by S&P Global serve as a roadmap for policymakers and investors alike. By focusing on sustainable practices and infrastructural development, India can solidify its position as a global economic powerhouse in the coming years.