CII Projects 7% GDP Growth for 2025-26 Amid Rising Investments

The Confederation of Indian Industry (CII) anticipates India’s Gross Domestic Product (GDP) to grow by 7% in the fiscal year 2025-26, driven by an uptick in private investments and employment generation.

Private Investments on the Rise

A recent pan-India survey by CII reveals that 75% of respondents view the current economic climate as favorable for private investments. Notably, 70% of the surveyed firms plan to invest in FY’26, indicating a potential surge in private sector participation in the coming quarters.

Employment Generation Trends

The survey also highlights positive employment trends, with approximately 97% of firms expecting to increase their workforce in both 2024-25 and 2025-26. Specifically, 42% to 46% of firms anticipate a 10% to 20% rise in employment, while 31% to 36% foresee up to a 10% increase. Additionally, 79% of respondents reported adding more employees over the past three years.

Comparative Growth Projections

This projection aligns with the Reserve Bank of India’s (RBI) estimate of a 7% GDP growth for 2025-26, as stated by RBI Deputy Governor Michael Patra. Patra also mentioned the likelihood of India’s growth reverting to an 8% trend thereafter.

Government’s Growth Estimates

In contrast, the government’s first advance estimates peg India’s GDP growth at 6.4% for 2024-25, down from 8.2% in 2023-24. This projection considers a rebound in agriculture and allied sectors, estimated to grow by 3.8% in 2024-25 compared to 1.4% in the previous year.

Summary of the news

Why in News	Key Points
CII projects India’s GDP growth at 7% for 2025-26 amid rising private investments and job creation	– Confederation of Indian Industry (CII) estimates India’s GDP growth for 2025-26 at 7%.
	– 70% of surveyed firms plan to invest in FY 2025-26.
	– 75% of firms view the current economic environment as favorable for investment.
	– Survey shows 97% of firms expect to increase workforce in 2024-25 and 2025-26.
	– 42%-46% of firms plan to increase employment by 10%-20%.
	– India’s GDP growth forecast by RBI for 2025-26 also stands at 7%.
Government’s economic estimates	– India’s GDP growth is projected to be 6.4% for 2024-25 by the government.
	– Agriculture and allied sectors expected to grow by 3.8% in 2024-25.