India is on track to become the third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7 per cent for the current fiscal year, according to a report released by S&P Global on Thursday.
The report highlights that with an expected growth rate of 8.2 per cent for FY2024, continued reforms are essential to enhancing business transactions and logistics, boosting private sector investment, and reducing reliance on public capital.
It also notes that equity markets are anticipated to remain dynamic and competitive due to strong growth prospects and improved regulation.
Foreign inflows into Indian government bonds have surged since the country joined major emerging market indices, with further growth expected. To fully capitalise on trade benefits, India must develop its infrastructure and geopolitical strategies, particularly concerning its extensive coastline, the report states.
Nearly 90 per cent of India's trade is seaborne, necessitating robust port infrastructure to manage increasing exports and bulk commodity imports, it added.
The report also addresses India’s rising domestic energy demands and suggests a focus on sustainable technologies, including renewables and low-emission fuels, to balance energy security with transition plans.
Agriculture, it adds, will require advanced technologies and new policies to enhance infrastructure and productivity, with critical attention needed on issues such as irrigation, storage, and supply distribution to ensure food security and economic stability.
The inaugural edition of the 'India Forward: Emerging Perspectives' report by S&P Global India Research was launched on Thursday.
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