India’s economy in better shape, Deloitte projects 7% growth in FY2025

New Delhi| Romal Shetty, Chief Executive Officer (CEO), South Asia, Deloitte, said India remains in a bright spot even at a time when uncertainties are increasing in the global economy. India could achieve seven per cent growth in the current fiscal year (2025).

Romal Shetty said that inflation is largely controlled, rural demand has increased and vehicle sales are improving. He said, we believe that our growth rate in this financial year will be between 7 and 7.1 percent. Shetty is the chief executive officer of four large accounting and consultancy firms in India.

He said, we believe that in terms of growth in FY 2025, we will be in the range of 7 to 7.1 percent. The circumstances are opposite. But the truth is that despite whatever is happening at the global level, India is still in a better position. But we cannot say that we are separate from the world. He said, the ongoing crisis in West Asia and Ukraine and the recession in the Western world will affect GDP growth.

According to Deloitte estimates, GDP growth is likely to be 6.7 percent in the next financial year (2025-26). In the previous financial year (2023-24), India’s economy grew at 8.2 per cent. In an interview with PTI, Shetty said he hoped the Modi government would continue economic reforms like privatization at the same pace. India is moving towards becoming a five trillion dollar economy within this decade, which is currently the fifth largest economy in the world.

He said the fall in oil prices is a positive sign for India, as the country is a net importer of many things. Apart from this, the cut in interest rates by the US central bank Federal Reserve will be beneficial for India. Shetty also said that India will have to focus on increasing agricultural productivity using technology and identify specific areas where India can dominate globally.

Regarding India’s dream of becoming a developed country by 2047, Shetty said that currently the per capita income is $2,500, by then it should increase to $20,000. The economy will also grow rapidly if per capita income goes above a certain level. When per capita income reaches $5,000, people’s purchasing power will increase, he said. This will make the domestic economy more self-reliant.