New Delhi: India’s economy is projected to grow by 7-7.2% in the fiscal year 2024-25, driven by strong fundamentals, according to a Deloitte report released on Monday. The firm noted that the country’s economic outlook remains positive due to policy reforms and robust domestic demand.
Deloitte’s forecast aligns with the Reserve Bank of India’s (RBI) own growth estimate of 7.2%. The report highlighted the positive impact of the Union Budget 2024-25 in promoting growth and creating jobs through measures aimed at boosting productivity.
The economic update from Deloitte indicated that several reforms could further enhance India’s growth prospects. These include improved ease of doing business, better access to finance for small and medium enterprises (SMEs), and a continued focus on infrastructure development.
Rrumj Majumdar, an economist at Deloitte India, stated that the economic growth rate would benefit from a low inflation regime and a stable macroeconomic environment. He also emphasized that global uncertainties, such as inflationary pressures in the US and geopolitical tensions, might pose challenges in the short term.
The report underscored the significance of consumer spending and private sector investment in sustaining the growth momentum. Additionally, an improved global standing of India, supported by favorable policies from central banks worldwide, will further boost the economy.
Moody’s also shared a similar sentiment, projecting India’s economic growth to be in the range of 7% to 7.2% for FY25, bolstered by the country’s favorable policy environment and strong fundamentals.
The report highlighted that the combination of these factors would ensure steady economic growth, helping India maintain its position as one of the fastest-growing major economies globally.
By PTI
