Indian Economy: India is on its way to becoming the world's third largest economy by the financial year 2030-31. This estimate has been made in a report by the leading American rating agency S&P Global. The rating agency has said that the Indian economy is expected to grow at a rate of 6.7 percent in the current financial year. S&P Global said in a report on Thursday, with a growth rate of 8.2 percent in the financial year 2023-24, continuous reforms are needed to improve business transactions and logistics, promote private sector investment and reduce dependence on public capital.
Increase in foreign investment in government bonds
The S&P Global report said that stock markets are expected to remain dynamic and competitive due to strong growth prospects and improved regulation. Since India's inclusion in major emerging market indexes, foreign investment in Indian government bonds has increased. This is expected to increase further. The first edition of this report titled 'India Forward: Emerging Perspectives' said that India will have to develop infrastructure and geopolitical strategies to maximize trade benefits, especially with regard to its extensive coastline.
India needs strong port infrastructure
The report says that about 90 per cent of India's trade is carried out by sea, which requires strong port infrastructure to manage growing exports and bulk commodity imports. India is facing a growing demand for domestic energy, the report said. It said agriculture will depend on advanced technologies and new policies to improve infrastructure and productivity. Critical infrastructure issues such as irrigation, storage and supply distribution need to be tackled to ensure food security and economic stability.
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