India's Economic Resilience Amidst Global Headwinds

Deloitte India has projected that the nation's economy will expand by 6.7 to 6.9 percent in the current fiscal year, buoyed by strong domestic demand and ongoing policy reforms. The forecast underscores India's robust economic performance, which saw a 7.8 percent growth in the April-June quarter.

The Deloitte 'India Economic Outlook' report aligns closely with the Reserve Bank of India's projection of 6.8 percent growth for FY26. The report cites low inflation and the introduction of GST 2.0 as major factors bolstering growth. Economist Rumki Majumdar highlighted the expected rise in consumption during the festive quarter, driven by increased private investment.

Despite positive indicators, India's economic growth remains susceptible to global challenges, including trade uncertainties and potential capital outflows. With persistent core inflation above 4 percent, the Reserve Bank of India's ability to enact further rate cuts may be constrained.