Business News
2 min read | Updated on September 19, 2024, 16:54 IST
SUMMARY
India is on track to become the world’s third-largest economy by FY31, driven by a projected 6.7% growth rate this fiscal year, according to S&P Global. The report outlines the significance of sustained reforms aimed at boosting private sector investments and enhancing critical infrastructure, especially in ports and energy sectors.
The report also said that with 8.2% growth rate in FY2024, continued reforms are crucial to improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital.
India is on track to becoming the third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7% this fiscal, S&P Global said in a report on Thursday.
The report also said that with 8.2% growth rate in FY2024, continued reforms are crucial to improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital.
It said equity markets are expected to stay dynamic and competitive due to strong growth prospects and better regulation, and foreign inflows into Indian government bonds have surged since the country joined major emerging market indexes, with further growth anticipated.
To maximise trade benefits, India must develop infrastructure and geopolitical strategies, particularly regarding its extensive coastline, said the first edition of 'India Forward: Emerging Perspectives' report.
Nearly 90% of India's trade is seaborne, necessitating robust port infrastructure to manage increasing exports and bulk commodity imports, it added.
Noting that India faces rising domestic energy demands and can look to sustainable technologies, including renewables and low-emission fuels, balancing energy security with its energy transition plans, the report stated that agriculture will rely on advanced technologies and new policies to improve infrastructure and productivity.
The need is to address critical infrastructure issues such as irrigation, storage, and supply distribution to ensure food security and economic stability, it added.
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