(MENAFN– IANS) New Delhi, Oct 22 (IANS) A Deloitte report forecasts India’s GDP growth for FY 2024-2025 to be between 7% and 7.2%, consistent with the Reserve Bank of India’s 7.2% prediction.
Dr. Rumki Majumdar from Deloitte India noted that the economy is becoming more resilient after a tumultuous election period. India’s GDP grew 6.7% year-over-year from April to June, marking the slowest growth in five quarters, but it remains among the fastest-growing large economies globally.
Growth is expected to rise due to increased consumer spending, especially in rural areas, as inflation decreases and agricultural productivity improves thanks to favorable weather conditions.
The report highlighted potential benefits from higher capital inflows, leading to more long-term investments and job opportunities as multinational companies seek cost reductions.
Government efforts to boost manufacturing and employ the youth, along with India’s young population, present significant opportunities for growth. The goal is to reach a $5 trillion economy by FY 2027-2028, focusing on manufacturing, emerging industries, and clean energy to create good jobs.
According to Dr. Majumdar, many Indian states are already investing to harness this demographic advantage, which should show improvements in future employment surveys.
Rural spending is on the rise due to reduced food inflation and good rainfall, leading to high agricultural output. This uptick in rural demand is expected to affect spending during festive seasons.
Manufacturing capacity is currently at a record high of 76.4%, suggesting a pickup in private investments.
Dr. Majumdar expects growth to be between 7% and 7.2% for FY 2024-2025 and slightly lower at 6.5% to 6.8% for FY 2025-2026 due to global economic trends.
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