Deloitte Projects Indian Economy to Grow at 6.5-6.8% in FY25
The Indian economy is projected to grow at 6.5-6.8% in FY2025, driven by domestic consumption, infrastructure development, and digitisation, according to Deloitte India. Growth is expected to rise further to 6.7-7.3% in FY2026. However, challenges such as geopolitical tensions, trade disputes, and global liquidity constraints may weigh on the long-term outlook. Deloitte highlighted India’s resilience in services, manufacturing exports, and stable capital markets, which could offset global uncertainties and support economic growth.
Domestic Consumption: Enhanced agricultural incomes, targeted subsidies, and government welfare programs are expected to boost both rural and urban demand.
Manufacturing Exports: Growth in high-value segments like electronics, semiconductors, and chemicals strengthens India’s position in global value chains.
Infrastructure and FDI: The government’s focus on infrastructure development, digitisation, and attracting FDI is set to improve overall economic efficiency.
Global Uncertainties: Geopolitical tensions, US policy changes, and tighter global liquidity may reduce export demand and limit RBI’s monetary policy options.
Climate and Trade Risks: Supply chain disruptions and climate change impacts pose additional challenges to sustained growth.
Demographic Dividend: Investing in workforce development and employability can drive consumption and strengthen capital markets.
Self-Reliance: Developing a robust manufacturing sector for domestic demand and global value chain integration is key.
Digital Growth: Advancing digitally delivered services and high-value exports will help India capitalize on global nearshoring trends.
| Key Point | Details |
|---|---|
| Why in News | Deloitte projected India’s GDP growth at 6.5-6.8% for FY25 and 6.7-7.3% for FY26. |
| Primary Drivers for Growth | Domestic consumption, infrastructure development, digitisation, and FDI attraction. |
| Challenges Impacting FY25 | Election uncertainties, heavy rainfall, geopolitical tensions, and global trade disruptions. |
| Resilience Indicators | High-value manufacturing exports (electronics, semiconductors, chemicals) and stable capital markets. |
| Growth Sectors | Services, manufacturing exports, rural and urban consumption trends. |
| RBI Growth Forecast | Revised from 7.2% to 6.6% for FY25. |
| Global Challenges | Geopolitical risks, trade disputes, climate change, and tighter global liquidity. |
| Policy Focus Needed | Workforce development, skill enhancement, self-reliant manufacturing, and digital services. |
| Economist Quoted | Rumki Majumdar, Deloitte India Economist. |
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