S&P Global Ratings says that by 2030, India will become the third-largest economy in the world. The agency estimates that the country’s growth rate will reach 7% in the financial year 2026-27.
In Global Credit Outlook 2024, S&P wrote that ‘We believe that India’s GDP growth rate will be 6.4% in the financial year 2024-25. Whereas in the financial year 2025-26 the GDP growth rate will reach 6.9%.
The agency further wrote, ‘India will become the world’s third-largest economy by 2030 and our expectation is that among the major economies, India will be the fastest growing economy for the next three years.’ At present India is the fifth largest economy in the world. Before India there are America, China, Germany and Japan.
The agency said, ‘The big test will be whether India can become the next big global manufacturing hub or not, which is a big opportunity. A strong logistics framework will be an important factor in transforming India from a service-based economy to a manufacturing dominated economy.
However, how much India is able to take advantage of the labor market will depend on how skilled people are made and how much female participation in the workforce increases.
Moody’s makes China’s outlook negative
Rating agency Moody’s on Tuesday reduced the outlook of China’s economy from ‘stable’ to ‘negative’. The reason for this has been the continued weak medium term economic growth and weakening of the property sector. However, the agency has maintained China’s overall rating at ‘A1’.
