Mumbai: India will become the third largest economy by 2030-31 if the projected annual growth rate of 6.7 per cent in the current fiscal is taken as the base, S&P Global said in a report on Thursday. The report also said that with a growth rate of 8.2 per cent in the last fiscal, continued reforms are needed to improve logistics, boost private sector investment and reduce dependence on public capital.

The report also said that equity markets are expected to remain dynamic and competitive due to strong growth prospects and improved regulation. Not only this, foreign flows in Indian government bonds have increased since India's inclusion in major emerging market indices, which is expected to increase further in the future.

With nearly 90 per cent of India's trade moving by sea, there is a need for robust port infrastructure to manage rising exports and bulk commodity imports, the first edition of the 'India Forward: Emerging Perspectives' report said. India has a growing domestic energy demand and can focus on sustainable technologies, including renewable energy and low-emission fuels, the report said.

The report says the agriculture sector will depend on advanced technologies and new policies to improve infrastructure and productivity. Critical infrastructure issues such as irrigation, storage and supply distribution need to be addressed to ensure food security and economic stability, the report says.