Hope to industry: Economy to grow at strong pace of up to 7.9% in 2025-26; Estimates in Grant Thornton Survey

New Delhi| The industry expects the country’s economy to grow at a strong pace of up to 7.9 per cent in the next fiscal year 2025-26. This will be supported by advanced technology and reforms undertaken to improve ease of doing business. According to a pre-budget survey conducted by Grant Thornton, most people in the industry are optimistic about India’s economic outlook. He believes that the economic growth rate in FY 2025-26 could be between 6 percent and 6.9 percent. Some 22 per cent have expected strong growth rates in the range of 7.0-7.9 per cent.

The industry believes that the positive impact of the reforms made by the government so far will be visible in driving forward the growth rate in the next financial year. By linking fiscal policies with these priorities, the upcoming budget can act as a catalyst for growth while ensuring equity and efficiency in the economy. The survey is based on conversations with more than 155 people from different industries. The United Nations has maintained the growth projection for calendar year 2025 at 6.6 per cent.

Fiscal and monetary policy changes needed for 6.4 per cent economic growth: Moody’s
India will have to make changes in its fiscal and monetary policy to achieve GDP growth of 6.4 per cent in 2025 amid a depreciation of the rupee, declining foreign investment and volatile inflation, Moody’s Analytics said on Wednesday. At the same time, the analyst firm expressed hope that the FY 2025-26 budget will support domestic demand especially investment and a target will be set to keep the fiscal deficit below 4.5 per cent. Aditi Raman, co-economist at Moody’s Analytics, said India is facing a difficult situation in 2025. Weakness in the rupee, declining foreign investment and volatile inflation are the sectors at greatest economic risk. Long-term high interest rates will reduce domestic demand. The export environment may become challenging due to increase in duty on Indian imports into America.

Demand to reduce GST on health insurance
84 per cent of those surveyed supported reducing GST on health insurance. 68 per cent have expressed hope for expanding financial inclusion through SME lending and digital public infrastructure. Some 13 per cent advocated the introduction of new tax incentive measures for research and development.