India on track to become world's 3rd largest economy by 2030: S&P

India is the fastest-growing large economy and on track to become the world's third-largest by 2030, according to a report by leading firm Standard and Poor's.

The country's growth rate in fiscal year 2023-24 (FY24) was 8.2%, significantly higher than its government's estimate of 7.3%, it noted in its report titled India Forward: Emerging Perspectives.

It stated that India has consistently seen the highest private sector output expansion worldwide over the past year, adding that increasing the pace of structural reforms was key to unlocking private investment.

"The internalization of India's capital markets, supported by the inclusion of Indian government bonds in major emerging market indexes, is an encouraging first step."

S&P said India must lead global governance on technology such as generative AI, which could be used to power its economic growth.

"India is experiencing a multidimensional, interlinked economic and energy transition," according to the report. It added that the country's energy policy should balance security, affordability and adoption of material net-zero technologies.

The report also stated that India must capitalize on its 7,500-kilometer-long coastline to increase its commerce.