Economy
India To Grow 6.7 Per Cent Per Year From FY24 To FY31: S&P Global
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The Indian Economy is expected to grow at an average of 6.7 per cent in the next seven years, according to S&P Global's decade-ahead forecast.
India's gross domestic product (GDP) is likely to rise from $3.4 trillion in FY23 to $6.7 trillion in FY31, the report added.
"We expect India to grow 6.7% per year from fiscal 2024 to fiscal 2031, catapulting GDP to $6.7 trillion from $3.4 trillion in fiscal 2023," said S&P Global in its August volume report titled ''Look Forward, India Moment".
The report further added that India's per capita GDP will rise to about $4,500 by FY31.
"We expect capital to contribute 53% of India’s 6.7% average GDP growth through the end of the decade. That dwarfs a 17% contribution from labor, the other main factor of production. Increases in productivity will generate 30% of GDP growth," it said.
India's short-term economic growth will stand on the shoulders of its 678.6 million strong labor force, the report said, adding that getting more women to enter the workforce will be pivotal for future growth, as only 24 per cent were participating in 2022.
India has an immense opportunity to increase its share of global manufacturing exports, and the government is seeking to raise manufacturing to 25 per cent of GDP from 17.7 per cent by 2025, it said.
S&P Global said that share of venture capital flowing into Indian startups will double by 2030 and newer verticals to benefit from this include EVs, space technology, AI, drones, robotics and clean technology.
Meanwhile, the report added that mobility in India, despite having massive potential, will be challenged by infrastructural hurdles, especially in the cities.
“Urban centres are India’s growth engines. However, due to the massive influx of cars in cities, hyperlocal commuting challenges like congestion and pollution are detrimental to the India growth story," the report said, reports Livemint.
“This will make personal mobility far more important than individual car ownership, spurring demand for public transport and new and innovative shared mobility solutions," it added.
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