India needs to adapt to the emerging global scenario and harness its domestic strengths for sustained growth.
Deloitte India has projected India’s gross domestic product (GDP) growth rate to be 6.5 to 6.8 percent in the current financial year 2024-25. Deloitte India said in its economic scenario report on Tuesday that the country needs to use its domestic potential by keeping aside global uncertainties. At the same time, India has to adapt to the emerging global scenario and use its domestic capabilities for sustainable growth.
Despite global and domestic challenges, India is moving up the global value chains. This is evident from the increasing share in high-value manufacturing exports, especially in the field of electronics and machinery and equipment. Deloitte India has revised its annual GDP growth forecast for the financial year 2024-25 to 6.5 to 6.8 percent in its latest economic scenario, while keeping it at 6.7 to 7.3 percent for the next financial year 2025-26.
Deloitte India had projected the country’s economic growth rate for the current financial year to be 7 to 7.2 percent in its economic outlook report in October. Deloitte India economist Rumki Majumdar said, “Gross fixed capital formation was weaker than expected due to modest activity in construction and manufacturing due to election-related uncertainties in the first quarter and weather-related disruptions in the subsequent quarter. Government capital expenditure in the first half was only 37.3 percent of the annual target, which is much lower than 49 percent of last year and it is delayed in achieving the expected pace.”
Deloitte said in its report, the government acknowledges the growing importance of retail investors and may focus on strengthening their participation in the upcoming Union Budget 2025-26. These measures may include simplifying investment processes, enhancing safety mechanisms to protect domestic savings from market volatility, and promoting financial understanding through campaigns and incentives.