Has Deloitte Increased India’s GDP Growth Projection to 6.8% for 2025-26?
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Synopsis
Deloitte India has raised its GDP growth forecast to 6.8% for 2025-26, fueled by strong domestic demand and government reforms. With a robust economy and rising consumption, experts predict continued growth despite global challenges. Discover how these factors will shape India's economic future.
Key Takeaways
- Deloitte's GDP forecast for 2025-26 is 6.8%
- Strong domestic demand is a key factor
- Low inflation is expected to boost spending
- Rural consumer confidence indicates optimism
- Global trade uncertainties remain a concern
New Delhi, Oct 23 (NationPress) Deloitte India announced on Thursday an upward revision of its forecast for India’s GDP growth by 0.3 percentage points, now estimated at 6.8 percent for the fiscal year 2025-26, driven by strong domestic demand and various policy reforms initiated by the government.
The revision in the growth forecast is supported by a robust 7.8 percent growth reported by the Indian economy during the first quarter of the current fiscal year.
According to Deloitte’s India Economic Outlook report, "This performance showcases not only resilience but a renewed perspective of India emerging stronger than many countries. Similar growth rates are anticipated in the following year, although the range of variation is broader due to uncertainties in trade and investment."
Factors contributing to this growth include strong domestic demand, a supportive monetary policy, and structural reforms such as GST 2.0. Low inflation is expected to boost spending as consumer purchasing power rises, the report notes.
This forecast adjustment aligns with the RBI's recent increase in its growth projection for India to 6.8 percent.
Deloitte India Economist Rumki Majumdar highlighted that demand during the festive quarter is likely to be driven by a significant increase in consumption. This will likely be followed by robust private investment as businesses adapt to uncertainties and prepare for higher demand.
"There is also an expectation that India will finalize a deal with the US and the EU by year-end, which is anticipated to enhance overall investment sentiment. Strong growth in the first and third quarters is expected to propel annual growth," Majumdar remarked.
A high rural consumer confidence index (above 100) reflects optimism in rural demand, while improved crop yields are set to bolster farm incomes in the upcoming months, according to the report.
However, the growth for the current fiscal year is susceptible to global challenges. Rising trade uncertainties and the lack of a trade agreement with the United States pose potential risks that could hinder India's economic growth, the report cautioned.
Point of View
I firmly believe that reflecting on Deloitte's optimistic growth forecast signifies a positive trajectory for India. The emphasis on domestic consumption and structural reforms indicates a robust foundation for economic growth. However, we must remain vigilant about global uncertainties that could impact our progress.
NationPress
23/10/2025
Frequently Asked Questions
What is Deloitte's revised GDP growth forecast for India?
Deloitte has raised its GDP growth forecast for India to 6.8% for the fiscal year 2025-26.
What factors contributed to the increased growth forecast?
The increase is attributed to strong domestic demand, accommodative monetary policy, and structural reforms such as GST 2.0.
What does the future hold for India’s economy?
Experts anticipate strong growth driven by rising consumption and private investment, although global uncertainties pose risks.
