India will surpass Japan and Germany, becoming the third-largest global economy by 2030. According to the S&P Outlook, India’s GDP is expected to reach USD 7.3 trillion by 2030.
While global economic growth remained stagnant for the second consecutive month in September, India continued to stand out as a symbol of economic resilience, experiencing one of its strongest growth rates in nearly 13 years.
According to a report from S&P Global Market Intelligence, this contrasted with a mild contraction in the private sector output of developed markets, encompassing both manufacturing and services.
The Asia Credit Outlook 2023 report from S&P Global Market Intelligence predicts that India will emerge as the world’s third-largest economy by 2030, offering substantial opportunities for the medium to long term. If these projections hold, India will surpass Japan and Germany, becoming the third-largest global economy by 2030. According to the S&P Outlook, India’s GDP is expected to reach USD 7.3 trillion by 2030.
Currently, India is the fifth-largest economy globally, with a GDP of USD 3.7 trillion in 2023-24, having overtaken the United Kingdom as the fifth-largest economy in 2022.
The report from S&P Global Market Intelligence underscores the robustness of India’s economy, which continues to lead among major emerging economies, characterized by exceptional growth momentum. Notably, India was the sole economy among this group to accelerate its growth from August, with output expanding at one of the strongest rates in nearly 13 years. The Indian economy demonstrated sustained growth throughout the calendar year 2023.
India’s impressive expansion was underpinned by a significant increase in new business, driven by favorable demand conditions and positive market dynamics. Both the manufacturing sector and services industry in India contributed to this remarkable growth trajectory.
In contrast, Russia and China experienced more modest expansions, with both nations witnessing a slowdown in growth from August.
Emerging market firms experienced some relief from price pressures due to reduced service sector cost inflation. Nevertheless, strong demand growth allowed businesses to pass on higher costs at an accelerated rate. Consequently, selling price inflation in emerging markets reached its highest level in 14 months, providing optimism for firms’ profits.
Conversely, developed markets faced pressure on profit margins due to a faster rate of input cost increases, while selling price inflation declined in September. Nevertheless, selling prices in developed markets continued to rise at a rate well above the long-run average, despite the challenges posed by higher prices and client demand in an environment of high-interest rates and softening global economic conditions.
As India sustains its growth, the contrast between emerging and developed markets underscores the challenges and opportunities inherent in the ever-evolving global economic landscape.
Source: ANI
