India's Path to Becoming the Third Largest Economy by 2030-31
| Aspect | Details |
|---|---|
| Report | S&P Global report titled "India Forward Emerging Perspectives" |
| Projection | India on track to become the third-largest economy by fiscal 2030-31. |
| Projected Growth Rate | 6.7% annual growth rate driven by strong domestic demand and global contributions. |
| Current GDP (2023-24) | US$3.6 trillion |
| Projected GDP (2030-31) | Nearly double to over US$7 trillion. |
| Global GDP Share | Increase from 3.6% in 2023 to 4.5% in 2030. |
| Growth Highlights | - 8.2% growth in FY 2023-24 exceeds govt. estimate of 7.3%. - Highest private sector PMI expansion worldwide over the past year. |
| Budget Impact | - 17.1% growth in capex for FY 2024-25. - Reduction in import duties on critical minerals to boost private investments. |
| External Buffers | - Current account deficit narrowed to 0.7% of GDP (2023-24) from 2.0% (2022-23). - Foreign exchange reserves exceed US$650 billion. |
| Capital Inflows | - Inclusion of Indian bonds in global indexes to attract US$20-30 billion in portfolio inflows over the next two years. |
| Energy Transition | 7 key decisions: 1) Gas in power mix 2) Critical mineral security 3) Power sector reforms 4) Energy efficiency 5) Clean energy supply chains 6) Green finance 7) Tech innovation |
| AI Market Growth | Expected to grow to US$17-22 billion by 2027 with US$4 billion investments. India to become the third-largest AI talent base with 1.25-1.35 million skilled professionals. |