According to financial advice firm Deloitte, India’s GDP is predicted to grow at a pace of between 7 and 7.2 percent in 2024–25. This growth would be fueled by a recovering rural economy, solid manufacturing growth, healthy bank balance sheets, and more exports.
According to the August update of Deloitte’s India Economic Outlook, the Union Budget 2024–25 includes a number of 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. In India, new spending habits are developing in both rural and urban areas amidst the country’s strong growth. The data given by the Household Consumption Expenditure Survey 2022–23 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 a greater amount of 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.
“Continuity in domestic policy reforms, less uncertainty in US post-elections, and more synchronous global growth within a low inflation regime are key contributing factors.” Furthermore, better global liquidity conditions would spur increased capital flows and investment, especially in the private sector, as Western central banks loosen their monetary policy stance, according to Majumdar.
The growth estimate for the Indian economy by Deloitte India is consistent with the growth prediction of 7.2% made by the RBI. 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.
