India stands to enhance its nominal GDP to over $7 trillion by the fiscal year 2030-31 from $3.6 trillion in fiscal 2023-24 which nearly positions the economy as the world’s third largest. The global GDP estimate will be increasing with the expansion of the per capita income level from $3,600 to $4,500 by the year 2030-31. S&P foresees annual GDP GDP increases of 6.7 by thirtieth September 2031 after an increase of about 8% in the fiscal year 2024.

Structural reforms would facilitate enhanced private sector participation in investment pursuits reducing reliance on public sector funding. India is celebrated as the fastest developing large economy and the stock market in India operates in high volatility and is underpinned by high growth and high regulations. Nevertheless, these sustaining impulses are countered by decreasing housing affordability, food inflation and climate change which makes investment less cheap than ever. Continuous construction of new infrastructure is especially important with regard to transportation of increasing volume of commerce, particularly sea trade.

The positive macro economic outlook that coupled with record high PMI have contributed to unprecedented collections of GST. As S&P observed, some economic activity driven by new export orders and internal demand is increasing, while growth may be restrained by the RBI’s rate hikes and consolidation of fiscal policy. Yet despite high inflation and Russia’s aggression towards Ukraine, India will stay the fastest growing form of large economy.

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