India projected to become the third-largest economy by 2030: S&P Global Credit Outlook 2024

S&P Global Credit Outlook 2024

NEW DELHI: As the world navigates through dynamic economic landscapes, the S&P Global Credit Outlook for 2024 places a spotlight on India’s pivotal role in shaping the global economy.

According to S&P Global, India standing at the forefront of this economic transformation, is poised to become the third-largest economy by 2030, showcasing robust and rapid growth unparalleled among major economies.

According to the S&P Global Credit Outlook India’s GDP growth is forecast to hit 6.4 percent by 2024, 6.9 percent by 2025 and 7.0 percent by 2026.

Despite nuanced shifts in growth forecasts across the globe, India emerges as a beacon of economic potential and growth. India’s growth trajectory remains optimistic, fuelled by strategic initiatives.

With a strategic emphasis on manufacturing, India aims to become a global manufacturing hub, presenting a significant opportunity for economic advancement. To support this transition, building a robust logistics framework and upskilling the workforce, along with fostering increased female participation, becomes imperative.

India’s demographic dividend, a considerable asset, hinges on unlocking the labour market’s full potential. Furthermore, the nation’s burgeoning digital market is poised to amplify the growth of its start-up ecosystem, particularly in financial and consumer technology.

The automotive sector, backed by infrastructure, investment, and innovation, positions India for substantial growth.

The credit outlook also highlights the transformative global supply chain reconfiguration.

India, with its strong ties to the US and eurozone markets, emerges as a key beneficiary in this paradigm shift. Alongside Asian counterparts like Vietnam, India is attracting attention in this arena.

Beyond economic dynamics, the report emphasizes broader challenges such as climate change, technological disruptions, and geopolitical tensions.

The landscape of 2024 holds a significant number of national elections globally, adding a layer of uncertainty.

In this context, India’s strategic moves and economic resilience position it as a linchpin in the evolving global economic tapestry.

As India navigates these challenges and opportunities, its choices and policies are expected to reverberate globally, underscoring its pivotal role in shaping the trajectory of the world economy in the years to come.

In the latest projections, S&P Global Credit Outlook also shows that the U.S. and Eurozone maintain steady growth forecasts, while notable revisions surface in the big emerging markets, particularly China and India.

China’s economic pace has moderated, marked by challenges in the property sector despite government stimuli.

The recent approval of a substantial sovereign bond issue and adjustments to bond quotas contribute to a real GDP growth forecast of 5.4 per cent for 2023 and 4.6 per cent for 2024.

However, persistent issues in the real estate sector pose hurdles, impacting cash flows for developers and local and regional government’s revenue sources. (ANI)

Also Read: India&’s GDP growth boosts quality, quantity of employment, says IMF Executive Director