Deloitte projects a reassuring 7% growth for the Indian economy in FY25, as it successfully navigates global challenges.
CEO Romal Shetty points to stable inflation coupled with growing demand in rural areas and vehicle sales, which helped India stand out as one of the bright spots in the world’s economic scenario.
Shetty feels that such headwinds can be India’s navigational allies. One of the youngest CEOs in India belonging to the Big Four accounting firms, he remains optimistic that India shines in an otherwise bleak global landscape. Controlling inflation and increase in demand through rural demand adds to this growth story. He agrees that a geopolitical crisis and slowdowns in the Western economies would write off growth, but for India, it is not as bleak as with many of its peers.
According to Deloitte projections, growth is likely to be 6.7 percent in the next fiscal year (2025–26). The Indian economy grew 8.2 percent in the previous fiscal year 2023-24.
Shetty says the Modi government is on a trajectory of economic reforms, from privatization to pushing efficiency within government departments, and India has every chance to become the third largest economy at the end of this decade, he believes. India was the fifth-largest economy in the world.
Indian imports should still be helped by recent crude oil price softness. Further support to the Indian economy may also come from prospects for any US Federal Reserve interest rate cuts this year. Shetty calls India the “services capital of the world,” and he believes improvements in agriculture technology could increase productivity. He also said they have to determine which sectors India can lead the world in.
Speaking of India’s aspiration to become a developed nation by 2047, Shetty said, “Per capita income has to grow from its present level of $2,500 to $20,000.” He thinks that per capita income reaching at least the $5,000 mark will ensure increased consumer expenditure, make substantial contributions to the domestic economy, and push for faster self-reliance and growth.
