S&P Global Forecasts India’s GDP Growth to Reach 7% by 2026

A recent report by S&P Global suggests that India is on track to become the third-largest economy by 2030, with its GDP expected to grow from 6.4% in 2023 to 7% in 2026. Currently, India is the fifth-largest economy globally, following the US, China, Germany, and Japan.

S&P predicts that India will be the fastest-growing major economy in the next three years and projects a growth rate of 7% by the fiscal year 2026-27. However, the report highlights a challenge: India needs to transform into a global manufacturing hub successfully.

The report emphasizes the importance of a robust logistics framework to shift India’s economy from being service-oriented to manufacturing-dominated. It suggests that focusing on skills development and increasing female participation in the workforce can unlock the potential of India’s labor market.

S&P sees a significant opportunity for India in the thriving domestic digital market, particularly in financial and consumer technology startups, which could fuel growth in the next decade. The report’s insights come after India experienced a faster-than-expected GDP growth rate of 7.6% in the September quarter.