India's Ascendance: Projected to Become World's Third-Largest Economy by 2030, S&P Global Ratings Reveals

India is poised to secure its position as the world's third-largest economy by 2030, trailing only behind the United States and China, as per a recent report by S&P Global Ratings. The report predicts a robust 7% GDP growth for India in the fiscal year 2026-27, solidifying its ascent on the global economic stage.

Currently holding the fifth position in the global economic ranking (2023), India follows the US, China, Germany, and Japan. The Global Credit Outlook Report 2024 from S&P anticipates a 6.4% GDP growth at the conclusion of the ongoing financial year. The report outlines a steady growth trajectory, forecasting a consistent 6.4% growth rate for the subsequent financial year (2024-25) and a further uptick to 6.9% in 2025-26, culminating in a noteworthy 7% in 2026-27.

The report underscores a crucial challenge for India—transforming into a key global manufacturing hub. S&P emphasizes that establishing a robust logistics framework is pivotal to shift India from a services-centric economy to one dominated by manufacturing.

In its assessment, S&P highlights that the country's GDP growth will hinge on effective utilization of its labor force and greater participation of women across various sectors. The report emphasizes that success in these domains is imperative for India to fully realize its demographic dividend.

The report acknowledges India's significant strides in the domestic digital sector, foreseeing it as a driving force for the nation's economic surge in the years ahead. S&P notes that India's automotive sector is strategically positioned for growth, leveraging infrastructure, investment, and innovation.

As of now, the United States leads with a GDP of $25.5 trillion, followed by China at $18 trillion. S&P's projections indicate that India's GDP is anticipated to reach $7.3 trillion by 2030, surpassing the economic outputs of Japan and Germany.