India on track to become the third largest global economy by 2030 but the growing population presents increasing challenges in basic service coverage and development investment needs To maintain productivity, S&P Global Ratings Said on Thursday. It said emerging economies have high ambitions for the next decade and beyond, with India aiming to become a US$30 trillion economy by 2047 from the current US$3.6 trillion. India is currently the fifth largest economy.
“India is poised to become the fastest-growing major economy over the next three years and the third-largest economy globally by 2030. Its 2024 entry into JPMorgan’s Government Emerging Markets Bond Index could provide additional government funding and domestic Can unlock important resources in the area. capital marketThis is only the first step – investors will continue to look for better market access and settlement processes,” S&P said.
Its report is titled ‘Look Ahead’ emerging markets‘: A Pivotal Decade’, S&P said emerging markets will play an important role in shaping the global economy over the next decade, accounting for an average of 4.06 per cent. GDP growth by 2035, compared to 1.59 percent for advanced economies.
By 2035, emerging markets will contribute about 65 percent of global economic growth. This growth will be driven primarily by emerging economies in Asia-Pacific, including China, India, Vietnam and the Philippines.
“Further, by 2035, India will be positioned as the world’s third-largest economy, with Indonesia and Brazil at eighth and ninth respectively,” S&P said.
It said India has also taken measures to improve its weak fiscal flexibility by increasing its capital expenditure, which will support long-term growth.
But population challenges Significantly, the country is expected to have the world’s largest population by 2035. S&P said this presents increasing challenges in increasing investment needs to maintain basic service coverage and productivity.
Saying that India is well positioned to grow its economy over the next decade, the US-based agency said that as the next decade comes to a close, the economic trajectory of emerging markets will likely be significantly determined by their governments’ design and implementation of long-term growth strategies. Will be affected. ,
S&P said, “Establishing ambitious long-term development goals provides a clear roadmap for progress. These goals signal that policymakers are planning for the future, identifying vulnerabilities and working with the private sector as well.” “Giving priority to strategic sectors to mobilize capital and investment.”
