India's Economic Growth To Hit 6.5–6.8 pc In FY2025 , Higher In FY2026: Deloitte

ENA Sectors 2024-12-30 17:13:08 New Delhi, Dec 30 (KNN) India's economy is poised to maintain robust growth despite recent headwinds, with projections indicating an expansion of 6.5 to 6.8 percent in the current fiscal year, according to a new Deloitte report. The outlook appears even more promising for FY2026, with growth expected to reach between 6.7 and 7.3 percent. While the first half of FY2025 experienced slower growth due to election-related uncertainties, adverse weather conditions, and global tensions, the economy's fundamental strengths remain intact, supported by strong domestic consumption, services sector performance, and high-value manufacturing. Rumki Majumdar, Deloitte India's Economist, emphasised the economy's resilience in key sectors. She highlighted India's growing prominence in global value chains, particularly in electronics, semiconductors, and chemicals exports, alongside positive consumption trends and services sector growth. The government's strategic focus on infrastructure development, digital transformation, and foreign direct investment attraction is anticipated to drive further economic efficiencies and enhance growth prospects, despite the Reserve Bank of India's recent downward revision of growth forecasts to 6.6 percent from 7.2 percent. The report also noted the remarkable stability of India's capital markets, which have maintained their strength despite significant foreign institutional investor outflows, thanks to increased participation from retail and domestic investors. Majumdar identified domestic consumption as the primary driver of economic growth, with both rural and urban demand playing vital roles, supported by government initiatives, social welfare programs, and ongoing digitisation efforts. Looking ahead, while India faces various global challenges including geopolitical tensions, trade disputes, and climate change impacts, the outlook remains cautiously optimistic. Majumdar stressed that India's future growth trajectory will depend on its ability to insulate itself from global uncertainties while leveraging its inherent strengths, particularly its demographic dividend and expanding middle class. She emphasised the importance of focusing on workforce development, self-reliant manufacturing, and advancing digital services as strategies to capitalise on opportunities amid global deglobalisation trends. As the country approaches the Union Budget for FY2025, attention is focused on anticipated policy measures, particularly those aimed at enhancing skills development, promoting manufacturing self-reliance, and strengthening India's position in global value chains. These initiatives are expected to play a crucial role in sustaining the country's growth momentum and economic resilience. (KNN Bureau) 40430 https://knnindia.co.in/news/newsdetails/sectors/indias-economic-growth-to-hit-6568-pc-in-fy2025-higher-in-fy2026-deloitte 2024-12-30 17:13:08 knnindia.co.in India's Economic Growth To Hit 6.5–6.8 pc In FY2025 , Higher In FY2026: Deloitte