NEW DELHI– Deloitte India has raised its forecast for the country’s GDP growth to 6.8 percent for fiscal year 2025–26, up 0.3 percentage points from its previous estimate, citing robust domestic demand and continued policy reforms by the government.
The upward revision follows India’s solid 7.8 percent expansion in the first quarter of the current fiscal year, signaling sustained economic momentum. “This performance signals not just resilience but a renewed sense of India emerging stronger than most nations,” Deloitte said in its India Economic Outlook report. The firm added that while similar growth levels are expected next year, potential variations could arise from trade and investment uncertainties.
According to the report, growth will be driven by strong consumer spending, supportive monetary policy, and structural measures such as the proposed GST 2.0 framework. Low inflation is also expected to boost purchasing power and fuel consumption.
The revised projection comes shortly after the Reserve Bank of India (RBI) also lifted its own growth forecast to 6.8 percent, reflecting growing optimism about India’s medium-term economic trajectory.
Deloitte India economist Rumki Majumdar noted that festive season demand is expected to strengthen further in the coming months, followed by a rebound in private investment. “There is also anticipation that India will strike a deal with the U.S. and the EU by the end of the year, which is expected to elevate overall investment sentiments. Strong growth in the first and third quarters is likely to drive overall annual growth,” she said.
The report pointed to rising rural optimism, with the rural consumer confidence index now above 100, and improved crop yields expected to bolster farm incomes through the end of the year.
However, Deloitte cautioned that India’s growth remains exposed to global headwinds. Escalating trade tensions and potential delays in finalizing trade agreements with the United States could pose short-term risks to the country’s economic outlook. (Source: IANS)
