New Delhi: Global brokerage firm Goldman Sachs says that India will remain one of the world's fastest growing economies till 2030, driven by strong GDP growth and positive investment sentiment.

The brokerage company said in a report that the country's income has started stabilizing in the last few years, as the country remains resilient even amid global uncertainties. Both the total income growth and market capitalization of Nifty have achieved a compound annual growth rate (CAGR) of 18 percent in the last five years.

What will be India's GDP growth

The Asian Development Bank (ADB) has maintained India's growth forecast at seven percent for the current financial year i.e. 2024-25. The bank said that better agricultural production and more government spending will boost economic activities. In its Asian Development Outlook (ADO) of September, ADB said that exports in the current financial year will be higher than previously estimated. Services will have a major contribution in this.

India's economy has shown remarkable resilience in the face of global geopolitical challenges. Agricultural reforms will boost rural spending, which will complement the effects of strong performance of the industry and services sectors.

Miyo Oka, Country Director, ADB

However, export growth will be relatively slow in the next financial year. ADB has projected the growth rate to be 7.2 percent in the next financial year 2025-26. The growth rate estimates for both the financial years are as per the forecast made in April 2024. In the last financial year (2023-24), the Indian economy grew at the rate of 8.2 percent. RBI has projected growth to be 7.2 percent in the current financial year.

The effect of good monsoon will be visible

The ADB report said growth slowed to 6.7 per cent in the first quarter (April-June) of the current fiscal year, but it is expected to pick up in the coming quarters with improvements in agriculture and largely strong prospects for industry and services.

The report highlights that above-average monsoon in most parts of the country will lead to strong growth in agriculture, which will boost the rural economy in the current fiscal year. Strong agriculture and already strong urban consumption will boost rural consumption, which is expected to improve private consumption. Prospects for private investment are optimistic, but growth in public capital expenditure will slow in the next fiscal year.

11.3 crore families will join the 30 lakh earning club

With India's economic progress, the lives of the people will also be brightened. By the financial year 2031, there will be 11.3 crore new Indian families whose annual income will be more than Rs 30 lakh. According to a report by U Gro Capital, the number of middle class families with an annual income of Rs 5 to 10 lakh will increase by 28.3 crore.

Additionally, the country's per capita GDP in dollar terms is projected to double by 2029. This will further boost consumption and spending by Indian households. This increase in per capita income will also create new opportunities for businesses as consumer demand grows across various sectors.