Advertisement
Deloitte India has projected the country's GDP to expand between 6.7-6.9% in the current fiscal, reflecting an upward revision from earlier forecasts. Growth in the April-June quarter reached 7.8%, driven by robust domestic demand and policy reforms. Analysts expect the festive season to boost consumption, followed by heightened private investment. While structural reforms, accommodative monetary policy, and low inflation support growth, global uncertainties-such as trade tensions, high US interest rates, and inflationary pressures-pose risks. Strengthening MSMEs remains key to sustaining long-term economic momentum.
Deloitte India has projected India's economy to grow at 6.7-6.9% in the current fiscal, averaging 6.8%, marking an upward revision of 0.3 percentage points from its earlier estimate. The April-June quarter recorded a strong 7.8% growth, indicating resilience in the domestic economy and a potential for India to outperform many other nations. Advertisement
The report highlights that growth is expected to remain steady in the next fiscal year, although uncertainty around trade and investment could widen the range of outcomes. The Reserve Bank of India's forecast aligns closely, projecting FY26 growth at 6.8%. Expansion is likely to be driven by strong domestic demand, supportive monetary policy, and structural reforms such as GST 2.0. Low inflation is expected to enhance consumer spending by improving purchasing power.
Deloitte India economist Rumki Majumdar noted that consumption is expected to rise notably during the festive season, followed by strong private investment as businesses respond to demand and plan for future growth. Majumdar also mentioned expectations of India securing trade agreements with the US and the EU by the end of the year, which could further strengthen investment sentiment. Growth in the first and third quarters is likely to underpin annual economic expansion.
Despite these positives, the economy remains exposed to global risks. Trade uncertainties, delays in securing international agreements, and restrictions on critical minerals could affect growth. Higher inflation in Western economies may also transmit price pressures to India. While years of policy intervention have brought down headline inflation, core inflation has remained above 4% since February, potentially limiting the RBI's room for further rate cuts.
Majumdar added that prolonged high US policy rates could tighten global liquidity, constrain the RBI's monetary flexibility, and accelerate capital outflows from emerging markets, including India-a trend already observed in recent months.
Deloitte emphasized that while policy efforts have boosted domestic consumption, empowering the micro, small, and medium enterprises (MSME) sector is the next key step. MSMEs are crucial for employment, income generation, exports, and investment, forming an essential foundation for sustainable economic growth.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
