Deloitte pegs India’s FY26 growth at 6.4–6.7% on strong domestic fundamentals

Consultancy cites resilient demand, policy push and trade diplomacy; flags geopolitical risks

August 6, 2025

Growth is expected to be supported by resilient domestic demand, easing inflation, and proactive policy measures

Strategic trade negotiations with the UK, US, and EU are seen as key multipliers for income, jobs, and market access

Deloitte highlights India’s strengths in capital markets, consumer demand, and a globally competitive workforce

Recent trade agreements are expected to boost cooperation in AI, digital transformation, and innovation-led startups

Deloitte India has projected India’s GDP growth for FY 2025–26 in the range of 6.4–6.7%, underpinned by strong domestic fundamentals and expanding global trade opportunities. The forecast compares with 6.5% growth recorded in 2024–25.

The firm said the outlook is driven by resilient domestic demand, easing inflationary pressures, and a bold policy push combined with active global trade diplomacy. Negotiations with the UK concluded in May, ongoing talks with the US, and an expected agreement with the European Union by year-end are likely to boost income, jobs, market access, and domestic consumption.

Economists noted that India’s growth momentum stands out in an otherwise volatile global economy, propelled by strong capital markets, a dynamic consumer base, and a skilled workforce competitive at the global level.

Deloitte pointed out that recent trade pacts could also deepen cooperation in emerging areas such as artificial intelligence, digital transformation, and startup innovation.

However, the firm cautioned that India needs to monitor its trade exposure and remain prepared for the potential impact of geopolitical uncertainties. It highlighted that regional conflicts and curbs on critical minerals and specialised fertilisers may affect the outlook.

The consultancy concluded that the country’s growth story will continue to be shaped by the interplay of robust domestic drivers and expanding international opportunities, even as global headwinds persist.

Source: The Hindu

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