New Delhi:
Deloitte India in its new Economic Outlook report has estimated India’s gross domestic product (GDP) growth rate to be 6.5 to 6.8 percent for the current financial year 2024-25. The report said that India should move away from global uncertainties and make full use of its domestic capabilities and need to adapt itself to the global outlook for sustainable development.
India is moving ahead in the global value chain
According to Deloitte, despite global and domestic challenges, India is accelerating high-value manufacturing exports. India’s participation is increasing especially in the field of electronic components and machinery, which shows India’s strong presence in the global value chain.
Growth rate for 2025-26 expected to be 6.7 to 7.3%
Deloitte India in its report has estimated India’s GDP growth rate for the upcoming financial year 2025-26 between 6.7 to 7.3 percent. However, last October, Deloitte had estimated the GDP growth rate for the current financial year to be 7 to 7.2 percent, which has now been reduced to 6.5 to 6.8 percent.
Slow growth rate due to economic recession
Deloitte India economist Rumki Majumdar said in the report that construction and manufacturing activities have been slow due to election-related uncertainties and weather. The government’s capital expenditure in the first half was only 37.3 percent of the annual target, which is less than last year. Last year this figure was 49 percent.
He said that to maintain the pace of development, the government needs to give further impetus to infrastructure and capital expenditure.
Focus will be on retail investors in the upcoming Union Budget
According to the Deloitte report, the government is recognizing the growing importance of retail investors and measures can be taken to increase their participation in the upcoming Union Budget 2025-26. The government can focus on various campaigns and incentives to ease investment, enhance safeguards to protect household savings from market volatility and enhance financial understanding.
The report said that several steps can be taken for retail investors in the budget, which include simplifying investment processes, better security systems to keep household savings safe and promoting financial education and investment awareness campaigns.
Deloitte India believes that India should be prepared to face global challenges by making better use of its domestic capabilities. The inclusion of new measures for retail investors in the upcoming budget by the government may boost economic growth.