India is poised to become the world's third-largest economy by 2030, but a growing population poses a challenge to basic service coverage as well as the growing need for investment to maintain productivity, S&P Global Ratings said.
According to the report, emerging economies have high ambitions for the next decade and India aims to become a $30 trillion economy by 2047, up from $3.6 trillion at present. India is currently the fifth largest economy.
India is poised to become the fastest growing economy in the next three years and the third largest economy by 2030. India's entry into the JP Morgan Emerging Markets Bond Index in 2024 will bring in more government investment and pave the way for significant inflows into the domestic capital market. This is just the first step. Investors will be keen for better access to the market in the coming period as well.
S&P said emerging markets will play an important role in shaping the global economy over the next decade, with emerging markets targeting GDP growth of 4.6% by 2035, compared to around 1.59% in developed countries.
By the year 2035, emerging markets will contribute 65% of global economic growth. This growth will be made possible by the emerging economies of Asia-Pacific such as China, India, Vietnam and the Philippines.
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