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India is the fastest growing economy in the world. In terms of growth, India has left behind the United States, China, Japan and Germany. While Japan and the United Kingdom, the world’s two largest economies, are facing a recession these days, India’s economy is strengthening rapidly. If all goes well, within a few years India’s economy can become the third largest economy in the world, the leading rating agency predicts. Let us know what the rating agency has said about the Indian economy in its report…
India is set to become the third largest global economy by 2030. This is stated in a report by the rating agency S&P Global Ratings. The agency, however, said population growth presents increasing challenges to expanding the reach of basic services and also increases the need for investment to maintain productivity.
Fifth strongest economy
The report says emerging economies have big ambitions for the next decade and beyond. Currently with a $3.6 trillion economy, India’s goal is to become a $30 billion economy by 2047. India is currently the fifth largest economy in the world.
When will it become the third largest economy?
S&P said India is poised to become the fastest-growing major economy in the next three years and will become the world’s third-largest economy by 2030. Its entry into the emerging market government bond index of the investment bank JPMorgan in 2024 could provide additional government financing and access to significant resources in domestic capital markets.
This way the economy will have wings
S&P said in its report Emerging Markets Future Look: A Decisive Decade that emerging markets will play an important role in shaping the global economy over the next decade. While the average growth rate of the Gross Domestic Product (GDP) for 2035 will be 4.06 percent, for advanced economies this rate will be 1.59 percent.
By 2035, emerging markets will contribute about 65 percent of global economic growth. This growth will be contributed mainly by the emerging economies of the Asia-Pacific region. These include China, India, Vietnam and the Philippines.
Additionally, India will establish itself as the world’s third-largest economy by 2035, while Indonesia and Brazil will rank eighth and ninth, S&P said. He said India has also taken steps to improve its weak fiscal capacity by increasing its capital spending, which will further support long-term growth.
