India has all chances to become world's third largest economy

There are all chances for India to leave Japan and Germany behind to become the world's third largest economy, a report from S&P Global and Morgan Stanley said.

According to S&P Global, India's nominal annual GDP will reach 6.3 percent by 2030. Morgan Stanley expects India's GDP to more than double its current level by 2031, CNBC said.

S&P's outlook depends on the willingness of a country to continue trade and financial liberalization, reform the labor market, and attract investment in infrastructure and human capital. The Indian government is aiming to become a hub for foreign investors, analysts say.

"India has such advantages as cheap labor, low production costs, openness to investment. In addition, many Indians have a strong propensity to consume,” said Sumedha Dasgupta, senior analyst at the Economist Intelligence Unit.

India's economic growth slowed to 6.3 percent in annual terms in the second quarter (July-September), compared with 13.5 percent in the previous three months.