The growth rate is expected to remain at 6.4% next fiscal year (2024-25), then rise to 6.9%, and finally reach 7% in 2026-27. S&P expects India to reach 7% in FY2026-2027, according to a PTI report. 2026-27.
S&P believes India is on track to become the third-largest economy by 2030 and expects it to become the fastest-growing major economy over the next three years. Currently, India is the fifth largest economy in the world after the United States, China, Germany, and Japan.
Ratings agency emphasizes importance of India building global position Manufacturing base, this presents important opportunities for the country. The report highlights the need for a strong logistics framework to transform India from a services-driven economy to a manufacturing-driven economy.
To unlock the potential of the labor market, S&P recommends improving worker skills and increasing women’s labor force participation. The agency believes that success in these areas will enable India to make the most of its demographic dividend.
S&P also notes that India’s fast-growing domestic digital market is likely to contribute to the expansion of a high-growth startup ecosystem over the next decade, particularly in the financial and consumer technology sectors. .
Additionally, S&P sees potential growth in India’s auto sector, citing infrastructure development, increased investment and innovation as factors.
S&P’s outlook comes days after India posted a better-than-expected gross domestic product (GDP) growth of 7.6% in the September quarter.
