The Indian economy will grow 6.7 percent annually between now and 2030-31 or become the third largest economy in the world, S&P Global said on September 19.

“India’s medium-term prospects are healthy and filled with opportunities in multiple sectors including trade, agriculture, and AI, likely structural reforms and growing energy demands. India is poised for growth, and with a young and dynamic workforce well-positioned to shape the global economic landscape,” Head- S&P Global said.

The global research firm noted that continued reforms were necessary to boost private investment and reduce reliance on public capital. The report noted that the country needed to develop infrastructure and geopolitical strategies to maximise trade benefits and urged it to look for sustainable energy alternatives to cater to its growing population.

“Addressing the twin challenges of air pollution and climate change will help deliver a high-quality, high-growth economy to the world’s largest democracy,” the report noted.

It also pointed out the need to leverage AI to boost growth prospects further.

The report further noted there's a need to contain risks rising from food inflation, which may keep consumption muted.