Report states dollar worth to Indian economy will hit record high
Date
9/23/2024 8:26:04 AM
(MENAFN) India is poised to ascend to the position of the world’s third most valuable Economy in dollar terms by 2031, according to a recent report by S&P Global. Currently trailing behind the United States, China, Japan, and Germany when measured in United States dollars, India has already secured the third spot in terms of purchasing power parity.
The analysis projects that India will achieve a nominal GDP of $10 trillion by the end of this decade. S&P Global forecasts an impressive annual GDP growth rate of 6.7 percent for the country. Recent government data indicates that India’s GDP expanded by 8.2 percent in the fiscal year 2023-24, following a 7.2 percent growth in the previous year, reinforcing its status as the fastest-growing major economy in the world.
In a related development, the World Bank recently raised its growth forecast for India to 7 percent for the current fiscal year, up from an earlier estimate of 6.6 percent. This adjustment reflects expectations of enhanced economic performance driven by factors such as increased private consumption and investment.
The report emphasizes that while India’s economy demonstrates considerable resilience, achieving the ambitious target of USD1 trillion in merchandise exports by 2030 will necessitate strategic diversification and deeper integration into global value chains. The International Monetary Fund (IMF) has echoed this optimism, revising its own growth projection for India to 7 percent for the current fiscal year, highlighting the surge in private consumption as a critical driver of this adjustment.
To maintain this growth trajectory, the report from S&P Global outlines the need for India to implement reforms aimed at enhancing business transactions and logistics, increasing private-sector investment, and reducing dependency on public capital. Additionally, it underscores the importance of developing port and coastal infrastructure to support the expected rise in exports.
As India continues to solidify its economic standing, the focus on sustainable growth and strategic initiatives will be key to navigating the challenges ahead and realizing its full potential in the global economy.
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