India’s GDP to grow at 6.7% till FY31 to touch $6.7 tn, says S&P
New Delhi: S&P Global expects India’s GDP to grow 6.7% annually from FY24 to FY31, catapulting it from $3.4 trillion during the current fiscal to $6.7 trillion in FY31, the rating agency said in a report on Thursday. However, India will face macro challenges in the upcoming decade to turn traditionally uneven growth into a high and stable trend.
In its latest report titled ‘Look Forward: India’s Moment’, volume 3, S&P Global said that India’s short-term economic growth will be driven by a 678.6 million strong labour force, though getting more women to enter the workforce will be pivotal for future growth, as only 22% women participated in the workforce as of 2022. India has an immense opportunity to increase its share of global manufacturing exports, in line with the government’s aim to raise manufacturing to 25% of GDP by 2025 from the current levels of 17.7%, it said.
With domestic energy demand set to double by 2050, India will prepare for an energy future that aims to strike a balance between increasing energy access and reliability, while securing affordable supplies and diversifying its fuel mix, the report said, adding that S&P Global expects India’s total energy demand to double by 2050. Currently, though India is the third largest consumer of energy globally, its per capita energy consumption remains just one tenth that of the US.
“India and the rest of the world are joined at the hip in the journey to reach net-zero emissions...Developing countries will be watching closely as India continues its growth trajectory while trying to reduce the carbon intensity of its economy and ultimately bend its total GHG emission curve," said Atul Arya, chief energy strategist, S&P Global Commodity Insights. S&P expects oil
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