Sunday, April 14, 2024

Indian economy’s size to double by FY31, growth to average 6.7%: S&P Global

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S&P Global Ratings has forecast that India’s economy will grow at an average rate of 6.7% between fiscal years 2024 and 2031, with the size of the economy doubling to $6.7 trillion by FY31.

The ratings agency said that the Indian economy is well-positioned to grow at a faster pace than other major economies in the coming years, thanks to a number of factors, including a young and growing population, a strong domestic market, and a rapidly expanding digital economy.

S&P Global also said that the Indian government’s recent reforms, such as the introduction of a new bankruptcy code and the easing of foreign investment restrictions, are expected to further boost economic growth.

“India is well-placed to benefit from the global economic recovery,” said Crisil’s chief economist, DK Joshi. “The country’s strong domestic demand and favorable demographics will support growth in the coming years.”

The forecast from S&P Global is in line with other recent forecasts, which have also pointed to strong growth potential for the Indian economy. In June, the International Monetary Fund (IMF) forecast that India’s economy would grow by 7.2% in 2023, and by 6.9% in 2024.

The strong growth forecast for the Indian economy is a positive sign for the country’s long-term economic prospects. It suggests that India is well-positioned to become a major global economic power in the coming years.

Here are some of the key factors that are expected to drive India’s economic growth in the coming years

A young and growing population: India has the world’s youngest population, with an average age of 28 years. This means that the country has a large pool of potential workers, which can help to boost economic growth.

A strong domestic market: India has a large and growing domestic market, which is expected to continue to grow in the coming years. This is due to factors such as rising incomes and urbanization.

A rapidly expanding digital economy: India is one of the fastest-growing digital economies in the world. This is being driven by factors such as the increasing use of smartphones and the growth of e-commerce.

Recent reforms: The Indian government has recently introduced a number of reforms that are expected to boost economic growth. These reforms include the introduction of a new bankruptcy code and the easing of foreign investment restrictions.

The strong growth forecast for the Indian economy is a positive sign for the country’s long-term economic prospects. It suggests that India is well-positioned to become a major global economic power in the coming years.

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