Indian economy to grow by 6.7% per year from FY24, GDP to rise to $6.7 trillion by FY31: S&P Global

The Indian economy is expected to grow at an average rate of 6.7 per cent between fiscal 2023-24 (FY24) to fiscal 2030-2031 (FY31), said S&P Global giving a decade-ahead forecast for Asia's second-largest economy. India's gross domestic product (GDP) is likely to rise to $6.7 trillion to FY31 from $3.4 trillion in FY23, said S&P Global in its August volume report titled ''Look Forward, India Moment''.

S&P Global said that India’s short-term economic growth will be driven by a 678.6 million strong labour force, though getting more women to enter the workforce will be pivotal for future growth, as only 22 per cent women participated in the workforce as of 2022.

India has an immense opportunity to increase its share of global manufacturing exports, in line with the government’s aim to raise manufacturing to 25 per cent of GDP by 2025 from the current levels of 17.7 per cent

Already the third largest consumer of energy globally, India’s per capita energy consumption remains just one tenth that of the United States, according to the report. S&P Global Commodity Insights expects the country’s total energy demand to double by 2050. India’s efforts to meet its growing energy needs while lowering emissions will be closely watched as a model for other emerging economies.

“India and the rest of the world are joined at the hip in the journey to reach net-zero emissions…. Developing countries will be watching closely as India continues its growth trajectory while trying to reduce the carbon intensity of its economy and ultimately bend its total GHG emissions curve.” – Atul Arya, Chief Energy Strategist, S&P Global Commodity Insights.

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.

“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.