Deloitte has forecast that the Indian economy will grow between 6.5% and 6.8% in FY25, driven by robust domestic consumption, with projections for FY26 rising to 6.7% to 7.3%. Despite a slower-than-expected growth rate in the first half of fiscal 2025, influenced by election-related uncertainties, heavy rainfall, and geopolitical issues impacting exports and domestic demand, India’s economy remains resilient. The key growth sectors include consumption, services, and high-value manufacturing exports.
Economist Mrs. Rumki Majumdar pointed out that while the economy faced challenges in the first half of the year, areas such as services and consumption trends have shown significant resilience. Moreover, the government’s focus on infrastructure development, digitization, and attracting foreign direct investment (FDI) is expected to foster greater economic efficiency and contribute to growth in the coming years.
Looking ahead, Majumdar emphasized that India’s economic performance will largely hinge on its ability to manage global uncertainties, including geopolitical tensions and disruptions in supply chains. She stressed the importance of leveraging India’s demographic dividend and strengthening the manufacturing sector to make the economy more self-reliant. Additionally, the growing opportunities in digitally delivered services offer a pathway for India to integrate further into global value chains. The upcoming budget will be pivotal in setting the course for investments and policy measures that aim to prepare the workforce for future demands and fortify India’s position in global manufacturing and trade.
