Deloitte projects Indian economy to grow 7-7.2% in FY25
ECONOMY & POLICY

Deloitte projects Indian economy to grow 7-7.2% in FY25

Deloitte India retained its growth forecast for India at 7-7.2% for the current fiscal year 2024-25, noting that the economy had expanded by 8.2% in FY 2024. The company attributed this growth to domestic factors such as moderating inflation, particularly in food items, improved rainfall and record Kharif production, increased government spending in the latter half of the year, and rising manufacturing investments, all of which were expected to contribute positively to the country's economic outlook.

Rumki Majumdar, an Economist at Deloitte India, stated that higher capital inflows following the US Federal Reserve’s interest rate cuts could lead to long-term investments and job creation, as multinational companies sought to reduce operational costs globally. She cautioned, however, that India’s exports and economic outlook for the upcoming fiscal year might be affected by a tempered global growth outlook and a delayed recovery across Western economies. Deloitte projected growth for FY 2026 to be within the range of 6.5-6.8%.

The agency underscored the importance of job creation for ensuring stable household incomes, referencing recent employment data that indicated promising signs. Deloitte’s report observed that the MGNREGA scheme, which provides temporary employment to individuals with limited or no other stable income options, saw a decline in ‘employment demanded’ on a 12-month moving average basis, reaching pre-pandemic levels for the first time in August 2024. This decline may indicate that individuals are securing better-paying job opportunities.

Deloitte noted that India would require a greater number of formal, quality jobs to ensure equitable income distribution. The growth in manufacturing and the expansion of emerging industries, such as semiconductors and electronics requiring advanced skills, are anticipated to create high-quality employment opportunities. According to Deloitte’s findings, employment shares within the manufacturing and services sectors have shown modest improvement, with the highest job growth occurring in the “other services” category, which encompasses business and professional services. The share of salaried employees, which had declined during the pandemic, is also on the rise.

The report further highlighted that India's drive towards clean-energy alternatives is poised to generate green jobs across sectors including energy, agriculture, tourism, and transport. Additionally, Deloitte emphasised that India's young and ambitious population offers the country significant potential to reap benefits from the government’s recent initiatives in skill development.

Deloitte India retained its growth forecast for India at 7-7.2% for the current fiscal year 2024-25, noting that the economy had expanded by 8.2% in FY 2024. The company attributed this growth to domestic factors such as moderating inflation, particularly in food items, improved rainfall and record Kharif production, increased government spending in the latter half of the year, and rising manufacturing investments, all of which were expected to contribute positively to the country's economic outlook. Rumki Majumdar, an Economist at Deloitte India, stated that higher capital inflows following the US Federal Reserve’s interest rate cuts could lead to long-term investments and job creation, as multinational companies sought to reduce operational costs globally. She cautioned, however, that India’s exports and economic outlook for the upcoming fiscal year might be affected by a tempered global growth outlook and a delayed recovery across Western economies. Deloitte projected growth for FY 2026 to be within the range of 6.5-6.8%. The agency underscored the importance of job creation for ensuring stable household incomes, referencing recent employment data that indicated promising signs. Deloitte’s report observed that the MGNREGA scheme, which provides temporary employment to individuals with limited or no other stable income options, saw a decline in ‘employment demanded’ on a 12-month moving average basis, reaching pre-pandemic levels for the first time in August 2024. This decline may indicate that individuals are securing better-paying job opportunities. Deloitte noted that India would require a greater number of formal, quality jobs to ensure equitable income distribution. The growth in manufacturing and the expansion of emerging industries, such as semiconductors and electronics requiring advanced skills, are anticipated to create high-quality employment opportunities. According to Deloitte’s findings, employment shares within the manufacturing and services sectors have shown modest improvement, with the highest job growth occurring in the “other services” category, which encompasses business and professional services. The share of salaried employees, which had declined during the pandemic, is also on the rise. The report further highlighted that India's drive towards clean-energy alternatives is poised to generate green jobs across sectors including energy, agriculture, tourism, and transport. Additionally, Deloitte emphasised that India's young and ambitious population offers the country significant potential to reap benefits from the government’s recent initiatives in skill development.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?