PHDCCI: India to become fourth largest GDP next year, claims – growth rate to be 7.7% in 2025-26

New Delhi| Industry body PHDCCI believes the Indian economy could grow at 6.8 per cent in the current fiscal year and 7.7 per cent in 2025-26. Hemant Jain, president of PHD Chamber of Commerce and Industry (PhDCCI), said, India, which has been growing strongly for the last three years, can become the fourth largest economy in the world by next year i.e. 2026, surpassing Japan. The industry body said, the Indian economy is visible as a ray of hope amid global challenges. Many major economies of the world are struggling with slow growth, while India has demonstrated remarkable progress on the basis of solid economic fundamentals and government reforms.

Repo rate will decrease by 0.25% in February
PHDCCI Deputy General Secretary SP Sharma said, retail inflation is decreasing. Retail inflation may decline to 4.5 per cent in the current financial year and to between four and 2.5 per cent in the coming quarters. RBI may cut repo rate by 0.25 per cent in February monetary review due to declining retail inflation.

Highest taxes levied on those with incomes above 4 million
On the upcoming budget, the industry body said, it is important to promote consumption by keeping more income than is spent in the hands of the people. For this, the highest rate of income tax should be applicable only to persons with annual income above Rs 40 lakh. Also, the income tax exemption limit should be increased to Rs 10 lakh. PHDCCI said, today 1.5 million is a middle income and we are imposing the highest tax on it. There should be no highest rate on such middle income. If we are a consumption economy, even the highest rate should not exceed 25 per cent.