India on Track to Become World's Third-Largest Economy by 2031, S&P Global Reports

India remains the fastest-growing large economy despite slowdown, with manufacturing sector becoming more attractive to global investors.

19 May 2025 | 2894 Views | By Shruti Shiraguppi

S&P Global India Research Chapter released a report today stating that India is on track to become the world's third-largest economy by fiscal 2030-31 and is positioned to capitalize on evolving global trade dynamics. The report, titled "India Forward: Transformative Perspectives," highlights India's economic growth trajectory and its progress in enhancing manufacturing competitiveness over the past three decades.

The report identifies several key areas of development and opportunity for the Indian economy. According to the findings, India's manufacturing sector has become increasingly attractive to global investors, creating potential for accelerated growth and greater integration into global supply chains as international trade patterns evolve.

"India has made notable progress in enhancing its competitiveness and making its manufacturing sector more attractive to global investors. As economies adapt to evolving trade dynamics and tariff challenges, India can capitalize on this momentum for accelerated manufacturing growth and greater global supply-chain integration," the report states.

In the energy sector, the study emphasizes India's focus on alternative energy sources, particularly biofuels, which offer a "triple-win solution" by addressing energy security, reducing greenhouse gas emissions, and enhancing income opportunities for the agricultural sector.

The report also highlights recent regulatory changes in oil exploration and development, noting that these present opportunities for India to enhance crude oil production and move toward energy self-sufficiency.

"India Forward: Transformative Perspectives" was prepared by S&P Global and Crisil's cross-divisional India Research Chapter, an initiative of the S&P Global India Leadership Council, combining local expertise with global perspectives.

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