S&P Report predicts India’s GDP to Propel to $6.7 trillion in FY31 from $3.4 trillion in FY23

New Delhi(India), 04/08/23: From FY24 through FY31, the Indian economy is expected to develop at a rate of 6.7% each year. According to S&P, India’s GDP would more than double to $6.7 trillion in FY31 from $3.4 trillion in FY23. It goes on to say that per capita GDP will rise to around $4,500.

The report published by S&P, which is a stock market exchange tracking and stock performance tracking firm, went on to say that, however, unlike the East Asian economies, India would have to forge its own way.

Capital accumulation, as well as government and private sector investment in infrastructure and manufacturing, will underpin India’s prosperity. S&P emphasised the importance of digital infrastructure in driving growth.

The report added that India’s success will be mostly determined by India’s capabilities to, “reap its demographic dividend; increase labor force participation, including upscaling; boost private investment, with structural reforms in land, logistics and labor; and increase competitiveness, driven by foreign direct investment.”

According to the analysis, India’s consumer market would more than double by 2031, rising to $5.2 trillion from $2.3 trillion in 2022. According to the analysis, consumer spending on food will rise to $1.4 trillion by 2031 from $615 billion in 2022, while spending on financial services will rise to $670 billion from $280 billion.

Higher per capita incomes will enhance discretionary spending in sectors such as entertainment, communications, restaurants, and hotels.

Geopolitics may also provide tailwinds for India’s growth ambitions. Because of its geopolitical location, India would gain from supply chain diversification and reshoring. It admitted that geopolitical volatility could continue to be a problem.

Highlighting the geopolitical impact the report stated, “India is pursuing a pragmatic approach, cooperating and competing to serve its national interest. This means it is navigating changing partnerships and an evolving landscape. Deglobalisation and protectionist measures will also create some headwinds for exports. Trade partnerships could help to mitigate some of these effects.”