Deloitte Updates India's Fy24 Growth Projection to 7.6%-7.8%

Deloitte India predicts a 6.6% GDP growth for FY 24-25, boosted by increased consumer spending, exports, and investments. They revised the FY23-24 growth forecast to 7.6-7.8%. The rise of the middle-income class in India has led to higher purchasing power and demand for luxury items.

The firm anticipates that by 2030/31, half of Indian households will belong to the middle-to-high-income segments, further driving consumer spending. Deloitte's forecast aligns with the World Bank's, though it's lower than projections by the RBI and other agencies.

The global economy is expected to rebound in 2025, with India likely to benefit from improved capital flows and export growth. Strong economic performance over the past two years, supported by government infrastructure spending, has aided India's recovery from the COVID-19 pandemic.

However, concerns persist regarding inflation and geopolitical uncertainties affecting food and fuel prices. Despite this, an above-normal monsoon is expected to boost agricultural output and ease food prices.

Deloitte suggests corrective measures to sustain household spending, including increasing employment opportunities in rural and semi-urban areas and investing in infrastructure and skill enhancement programs like Future Skills Prime 2021 and Ayushman Bharat.

India's GDP grew by 8.4% year-on-year in the October-December 2023 quarter, surpassing analysts' expectations. PM Narendra Modi hailed this growth as evidence of India's economic strength and potential.

Deloitte's outlook indicates positive economic growth for India, driven by various factors like consumer spending, exports, and investments, despite challenges such as inflation and geopolitical uncertainties.