India’s Economy To Grow By 6.7% Per Year From FY24, GDP To Rise To $6.7 Trillion By 2031: S&P Global

The Indian economy is expected to grow at an average rate of 6.7% between fiscal year 2023-24 (FY24) to fiscal year FY 2030-31 and GDP is expected to grow to $6.7 trillion to FY31 from $3.4 trillion in FY23, said S&P Global in its August volume report titled ''Look Forward, India Moment''.

S&P further stated that India can ‘capitalise’ on this moment when other counties are facing unprecedented transition and uncertainty. 

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“The macro challenge for India in the upcoming decade is to turn traditionally uneven growth into a high and stable trend. We expect the Indian private sector to gradually increase investments given healthy corporate balance sheets,” Paul Gruenwald, Global chief economist S&P Global Ratings.

It further pointed out that growth from productivity contribution will be higher due to the “creation of physical and digital infrastructure in conjunction with efficiency-enhancing reforms.”

As per the global rating agency expectation, the capital is likely to contribute 53% of India’s average GDP growth, with productivity driving 30% of GDP growth.

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“India’s path to becoming a more influential global actor will be determined by how effectively it can manage its federalism balancing act and mobilize the participation of grassroots interests,” said Deepa Kumar, Head of Asia-Pacific Country Risk, S&P Global Market Intelligence.

The global firm further highlighted that India has the potential to increase its share of global manufacturing exports by citing the example of the expansion of India’s export industry for telecom equipment, including smartphones, which hit $11.8 billion in FY23.

Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh will be India’s top 5 growing states over the coming decade, with Maharashtra inching closer to a $1 trillion economy by 2030, according to the S&P report.