Deloitte estimates 6.6% GDP growth
New Delhi: Deloitte India said on Friday that it projects 6.6% GDP growth in India for the current fiscal year, driven by capital inflows, rising exports, and consumer spending.According to Deloitte’s India Economic Outlook Report, the middle-class population’s explosive expansion has increased buying power and even generated a market for high-end luxury goods and services.
It said that it is anticipated that by 2030/31, one in two families would belong to the middle-to-high income sector, compared to the present one in four. This trend is expected to continue and drive increase in total private consumer spending. India’s GDP growth forecast for the previous fiscal year was updated by Deloitte to be between 7.6 and 7.8%. The company predicted growth in the 6.9–7.2% range for the 2023–24 fiscal year in January.
In its quarterly update to its economic forecast, Deloitte said that as markets learn to account in geopolitical concerns in their investment and consumption choices, the country’s GDP growth is anticipated to reach around 6.6% in FY 2024–25 and 6.75 percent the following year. “As significant election-related concerns are resolved and the central banks of the West may declare a few rate decreases later in 2024, the global economy is anticipated to have a synchronized comeback in 2025. Exports will probably increase and capital flows will probably improve in India, according to Deloitte India Economist Rumki Majumdar.
The economy has been able to catch up with pre-Covid patterns thanks to strong growth figures over the previous two years. India has been able to sustain a steady economic pace thanks to investment and significant government expenditure on infrastructure, she said.
Nevertheless, there are worries that rising food and gasoline costs are a result of inflation and geopolitical unpredictability.
