India set to be third largest economy, says S&P Global

NEW DELHI: India is set to become the third largest economy and will be the fastest growing major economy for the next three years, global ratings agency S&P said in its latest report.
The agency has forecast the economy to grow 7% in 2026 and has raised its gross domestic product growth rate to 6.4% from the earlier 6% in the current fiscal year, citing robust domestic demand.
India is currently estimated to be the fifth largest economy with a GDP of $3.7 trillion. Several estimates show that India's GDP is expected to overtake Japan and Germany by 2030. A vision document being prepared by government think tank Niti Aayog has shown that India will be a $30 trillion developed economy by 2047.
The agency said that several emerging markets are bound to navigate the challenging global macroeconomic backdrop in 2024 better than their peers. Structural trends that will allow them to mitigate the impact from global headwinds are nearshoring and energy transition.