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. |
Tamil Nadu has achieved the highest real economic growth rate in India for the year…
Ram Navami is a very special Hindu festival that celebrates the birth of Lord Ram.…
Samata Diwas is celebrated every year on April 5 to remember the birth anniversary of…
On April 5, 2025, Prime Minister Narendra Modi was awarded Sri Lanka’s highest civilian honour,…
On April 4, 2025, Bangladesh officially became the new Chair of BIMSTEC for the next…
HIL Ltd, a major player in the building materials industry and part of the USD…