‘India to be third largest economy by 2030’

S&P Global Ratings on Tuesday said India will be the world’s third-largest economy by 2030, but a major test for the country would be to unlock the ‘immense opportunity’ and become the next big global manufacturing hub.The US-based rating agency expects India to be the fastest growing major economy in the next three years, with GDP growth reaching 7 per cent by 2026, from 6.4 per cent projected expansion in the current fiscal.Indian economy grew 7.2 per cent in 2022-23 fiscal ended March 2023. India’s GDP expanded 7.8 per cent and 7.6 per cent in the June and September quarters, respectively.”India is set to become the third-largest economy by 2030, and we expect it will be the fastest growing major economy in the next three years. A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity.”Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one,” S&P said in its report titled ‘Global Credit Outlook 2024: New Risks, New Playbook’.India, with a GDP size of USD 3.73 trillion at the end of 2022-23 fiscal, is currently the fifth largest economy in the world behind the US, China, Germany and Japan.The International Monetary Fund (IMF) has projected India to become a USD 5 trillion economy with the third largest GDP in 2027-28.