New Delhi. India is poised to become the third largest global economy by 2030. Rating agency S&P Global Ratings said this in a report on Thursday. The agency, however, said that the increasing population presents increasing challenges in expanding the scope of basic services and also increases the need for investment to maintain productivity.
The report said emerging economies have high ambitions for the next decade and beyond. Currently an economy of 3,600 billion dollars, India’s goal is to become an economy of 30 thousand billion dollars by 2047. India is currently the fifth largest economy in the world.
S&P said, “India is poised to become the fastest growing major economy in the next three years and the third largest globally by 2030. “Its entry into investment banking giant JP Morgan’s ‘Government Emerging Markets Bond Index’ in 2024 could provide additional government financing and access to significant resources in domestic capital markets.”
S&P said in its ‘Looking ahead to emerging markets: A defining decade’ report that emerging markets will play an important role in shaping the global economy in the next decade. While the average growth rate of Gross Domestic Product (GDP) by 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 to global economic growth. This growth will mainly be contributed by the emerging economies of the Asia-Pacific region. These include China, India, Vietnam and Philippines.
S&P said, “Furthermore, by 2035, India will be established as the world’s third largest economy, while Indonesia and Brazil respectively? Will be in eighth and ninth place.” It said India has also taken steps to improve its weak fiscal capacity by increasing its capital expenditure, which will further support long-term growth.