India is projected to become the world’s third-largest economy by 2030, growing at an estimated 7% GDP in the fiscal year 2026-27, according to a forecast from S&P Global Ratings. Currently the fifth-largest economy, India is anticipated to achieve 6.4% growth in 2023-24, maintaining that rate in the following fiscal year.
The growth is expected to accelerate to 6.9% in 2025-26 and reach 7% in 2026-27. The report emphasizes the importance of a strong logistics framework to transform India into a manufacturing-dominant economy. Additionally, unlocking the labor market’s potential involves upskilling workers and increasing female workforce participation.
S&P foresees India’s digital market driving growth in the startup ecosystem, particularly in financial and consumer technology, and expects a prosperous automotive sector fueled by infrastructure, investment, and innovation.