India to be 3rd-largest economy by 2030, but population poses challenges: S&P
global economy by 2030, but its rising population presents mounting challenges in basic service coverage, S&P Global Ratings said on Thursday.
«India is poised to be the fastest-growing major economy over the next three years and the third largest globally by 2030,» the ratings firm said in a report titled 'Look forward Emerging Markets: A decisive decade'.
Emerging markets will play a crucial role in shaping the global economy over the next decade, averaging 4.06% GDP growth through 2035 compared with 1.59% for advanced economies, it said.
By 2035, emerging markets will contribute about 65% of global economic growth. This growth will be driven mainly by emerging economies in Asia-Pacific, including China, India, Vietnam and the Philippines. «By 2035, India will be cemented as the world's third-largest economy, with Indonesia and Brazil ranking eighth and ninth, respectively,» S&P said. The country is projected to achieve an average annual growth rate of 5.9% between 2024 and 2035, second only to Vietnam. India is aiming to become a $30 trillion economy by 2047, from the current $3.6 trillion. It is currently the fifth largest economy.
India, it said, has also taken measures to improve its weak fiscal flexibility by boosting capital expenditure, further supporting long-term growth. «Its 2024 entry into JP Morgan's Government Emerging Market Bond Index could provide additional government funding and unlock significant resources in domestic capital markets. This is only a first step — investors will continue
