India’s nominal GDP is shown to grow from $3.7 trillion in 2023, when it ranked fifth, to $7.3 trillion by 2030. According to S&P Global projections, India’s GDP is expected to rise to third by 2030 place in the world.
India GDP 2030
S&P Global Ratings said in a report that India will continue to be the fastest-growing global economy over the next three years, making it the third-largest economy in the world by 2030.
The world’s fifth largest economy, India, is forecast by S&P to grow at a rate of 6.4% in the current fiscal year and reach 7% in the next fiscal year.
In contrast, it predicts that China’s growth will decrease from this year’s forecast of 5.4% to 4.6% by 2026. About 53% of Indians are under the age of 30, making them one of the youngest working populations in the world.
What is GDP?
The market value of all finished goods and services produced by a country or countries over a given time is expressed in monetary units as gross domestic product or GDP.
The government of a country most often uses GDP to assess the state of that country’s economy. This measure often changes before it is considered a reliable figure due to its subjective and complex nature.
India Growth Rate Prediction According To S&P
India’s GDP growth rate was estimated by S&P in its Global Credit Outlook 2024 at 6.4% for the fiscal year ending March 2024, down from 7.2% in the previous fiscal year.
According to the rating agency, the growth rate will remain at 6.4% in the coming fiscal year (2024-2025), increase to 6.9% in the following and 7% in 2026-2027. We see India reaching seven percent of its GDP in 2026-27 per annum.”
S&P projected that “India will develop into the third largest GDP economy by 2030 and we expect it to be one of the largest economies in the next three years.
In the coming decade, the ecosystem of high-potential startups, particularly in the financial and consumer technology sectors, could expand due to India’s strong domestic digital market, S&P noted.
That’s S&P’s view just after India’s GDP grew at a faster-than-expected 7.6% in the September quarter.
What should India do to enhance its Economic Rate?
Upskilling employees and encouraging more women to enter the workforce are two ways S&P suggests unlocking labor market potential. According to the agency, India could fully reap the benefits of its demographic dividend if these areas are successful.
S&P also notes that over the next decade, India’s domestic digital market could help fuel the rise of a fast-growing startup ecosystem, particularly in the consumer and financial technology sectors.
S&P also sees room for expansion in India’s auto industry, pointing to progress in infrastructure, higher investment, and innovation as drivers. The S&P forecast was released days after India’s GDP grew at a faster-than-expected 7.6% during the September quarter.
How To Increase India’s GDP?
These are some Tips to increase India’s economic Ranking:
- The creation of jobs depends on economic growth, which calls for comprehensive labor laws, higher rates of female labor force participation, better health, education, skill development, and the expansion of apprenticeship programs.
- The proposal calls for raising investment rates to 36% of GDP, raising the tax-to-GDP ratio to 22%, and working with state governments to simplify labor and land laws and make business easier.
- To connect different means of transportation, reduce tariffs, decide prices effectively, and provide a central repository for transport data, the logistics project entails building an IT-enabled platform.
- The program intends to support Industry 4.0 adoption through a “single window” in states, foster the growth of labor-intensive export businesses, and create self-sufficient manufacturing clusters.
- Incorporating a Goods and Services Tax (GST) for energy, endorsing smart grids and meters, augmenting freight transit via coastal shipping and inland waterways, and finalizing the Sagarmala project are among the suggested initiatives.
What influences India’s GDP growth?
India’s economy is expected to grow by 6.4% in FY2024. However, this expected target could be affected by four factors: a decline in the service sector, rising unemployment, declining manufacturing output, and air pollution.