India is on track to become the world's third-largest economy by 2031 driven by robust private sector output expansion, according to S&P Global. 

In its latest report, the US-based firm said that the Indian economy will grow by 6.7 percent and 8.2 percent, in this fiscal year and next fiscal year, respectively. 

"India is becoming a global leader during a period of geopolitical reordering and is in a unique position of being a bridge for advanced and emerging economies. India is on track to become the world's third-largest economy by 2030 and accelerating structural reforms will be key to unlocking private investment," said S&P Global in the report. 

Equity Markets to Remain Strong

The analysis further noted that equity markets in India are expected to stay dynamic and competitive due to strong growth prospects and better regulation. 

The report also highlighted that foreign direct investments have increased reaching India, especially after the country joined major emerging market indexes. 

"For emerging economies, India's approach could be an indicator for adopting diplomatic, regulatory and operational positions through their next stage of economic growth," added S&P Global. 

The US-based firm noted that India should also develop infrastructure and geopolitical strategies, particularly in its extensive coastline to bolster its economic growth. 

The Vitality of Artificial Intelligence

According to the report, India should also use advanced technologies like artificial intelligence to propel the country's growth in the future. 

"It will be critical for India to lead global governance on technologies such as generative AI, which can be harnessed for economic growth. India can aim to replicate the success of the digital infrastructure public-private partnership model," said the report. 

S&P Global also added that India is experiencing a multidimensional, interlinked economic and energy transition. 

According to the report, the country's growth story will rely on executing an energy strategy that balances security, affordability and adoption of material net-zero technologies. 

"India's total petroleum product demand will continue rising in the next decade. At the same time, its cross-sectoral realities require energy transition-specific policies and technologies to be net-zero by 2070," said S&P Global.