NEW DELHI: India will be cemented as the world’s third-largest economy by 2035 and along with China, Vietnam, and the Philippines, emerging markets in Asia-Pacific will contribute about 65% of global economic growth, a report said on Thursday. “Emerging markets will play a crucial role in shaping the global economy over next decade, averaging 4.06% GDP growth through 2035 compared with 1.59% for advanced economies,” S&P Global said in its report “Emerging Markets: A Decisive Decade.”
According to Jose Perez-Gorozpe, head of emerging markets credit research for S&P Global Ratings, emerging markets will play a crucial role in shaping the global economy, with nine key such markets ranking among the 20 largest economies.
It said India is poised to be the fastest-growing major economy over next three years and third largest globally by 2030. The report said India’s 2024 entry into JP Morgan’s govt emerging market bond index could provide additional govt funding and unlock significant resources in domestic capital markets.
“This is only a first step – investors will continue looking for improved market access and settlement procedures,” according to the report. The report said that India also took measures to improve its weak fiscal flexibility by boosting its capital expenditure, further supporting long-term growth.
“But population challenges are meaningful, with the country expected to have the world’s largest population by 2035,” the report cautioned.