Deloitte Gives Outlook For Indian Economy In FY25, Check GDP Growth Rate Estimate

The report called for an increase in focus on customers in the rural parts of the country and said their spending can be encouraged further by looking into inflation and employment worries

Indian economy is anticipated to clock a robust growth rate in the current 2024-25 fiscal year, a recent report stated. The latest August edition of Deloitte India’s Economic Outlook projected a growth rate of 7-7.2 per cent for the domestic economy.

Deloitte India on Monday attributed this growth to strong economic fundamentals and a consistency in policy reforms, reported PTI. The report said that the Union Budget 2024-25 called for multiple measures aimed at raising agricultural productivity and boosting employment generation for the youth.

The study said that the latest Budget included policies to facilitate the manufacturing sector and also talked about facing the obstacles faced by micro, small and medium enterprises (MSMEs) in accessing credit. These are expected to help improve supply-side demand, keep a tab on inflation, and enhance consumer spending, specially in the rural regions of the country, it added.

Elaborating on the report’s findings, Rumki Majumdar, Economist, Deloitte India, noted, “India will witness robust growth in the second half after a period of uncertainty in the first six months of the year. Key contributing factors include the continuity in domestic policy reforms, reduced uncertainties in the US post-elections, and more synchronous global growth within a low inflation regime.”

The report called for an increase in focus on customers in the rural parts of the country and said their spending can be encouraged further by looking into inflation and employment worries. If the policies can aim to reduce the spending gap between consumers in the urban and rural regions, the larger customer base in rural India will leave a major impact on demand, the report noted.

The predictions of the report stand in line with the growth estimates shared by the RBI earlier. The central bank pegged growth for FY25 at 7.2 per cent, while the Economic Survey from the Finance Ministry said that growth is expected to be between 6.5-7 per cent.