New Delhi: According to financial advice firm Deloitte, India’s GDP is predicted to expand by 7 to 7.2 percent in 2024–25, driven by a stable bank balance sheet, higher exports, robust manufacturing growth, and a recovering rural economy.
Deloitte India’s growth estimate for the Indian economy is consistent with the RBI’s growth prediction of 7.2%. The Economic Survey released by the Finance Ministry projected GDP growth of 6.5-7 percent, accounting for the possibility of negative outcomes resulting from increased geopolitical tensions and their impact on global economic uncertainty.
Elaborating further, according to the August update of Deloitte’s India Economic Outlook, the Union Budget 2024–25 includes several initiatives aimed at manufacturing, youth employment, and improving agriculture productivity. These initiatives are expected to boost supply-side demand, reduce inflation, and support consumer spending, particularly in rural areas.
The research states that there is hope as India grows by 8.2 percent in FY 2023–2024, surpassing all forecasts for the third year in a row. Amidst the country’s strong growth, new spending habits are developing in both rural and urban areas. The Household Consumption Expenditure Survey 2022–23 data shows a clear movement towards spending on services and discretionary durable goods (cars, electric and electronic goods, and other items).
This suggests a widespread change in the consumption mix toward more non-food and discretionary goods, reflecting evolving and permanent lifestyles and preferences. According to the survey, the emergence of a new generation of consumers is opening up new economic options.
After a period of uncertainty in the first half of the year, India will see robust growth in the second half of the year, according to Deloitte India Economist Rumki Majumdar.
“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. Additionally, improved global liquidity conditions, as central banks in the West ease their monetary policy stance, will enhance capital flows and drive higher investments, particularly in the private sector,” Majumdar said.
–IANS
