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‘India’s momentum is driven by a virtuous trifecta — resilient capital markets, a dynamic consumer base, and a globally competitive workforce,’ says Deloitte India.
India’s real GDP grew by 6.5% in FY 2024-25, remaining the fastest-growing major economy in the world.
India’s economy is expected to grow between 6.4 per cent and 6.7 per cent in FY 2025–26, according to Deloitte India, which attributes the optimistic forecast to strong domestic fundamentals and expanding global trade opportunities. This projection comes after the economy recorded a growth rate of 6.5 per cent in FY 2024-25.
Deloitte highlighted that India’s resilient consumer demand, easing inflation, and proactive domestic policies, coupled with an ambitious push in international trade diplomacy, will support growth momentum. It also noted that the country’s economic trajectory remains strong amid global volatility.
“India’s momentum is driven by a virtuous trifecta — resilient capital markets, a dynamic consumer base, and a globally competitive workforce,” said Rumki Majumdar, economist at Deloitte India.
The consultancy emphasised the importance of strategic trade negotiations underway with major economies including the UK, the US, and the EU. These deals are expected to boost income, employment, market access, and domestic demand, while also enabling collaboration in areas such as artificial intelligence, digital transformation, and innovation-led startups.
However, Deloitte cautioned that India must remain vigilant about its trade exposure and be prepared for the potential fallout of geopolitical tensions. It pointed to risks from regional conflicts and restrictions on critical minerals and specialised fertilisers, which could impact the overall growth outlook.
Despite these uncertainties, Deloitte believes India’s growth story will be underpinned by its strong internal fundamentals and expanding role in global trade.
Recently, Morgan Stanley in its report said India is on track to become the world’s third-largest economy by 2028 and more than double its GDP to $10.6 trillion by 2035. It said that by 2035, three to five Indian states — including Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka — are projected to approach the $1 trillion GDP mark, putting them among the world’s top 20 economies in their own right.
India has already surpassed Japan to become the world’s fourth-largest economy, according to IMF data, NITI Aayog CEO BVR Subrahmanyam announced in May 2025. According to the IMF, India’s GDP is currently $4.187 trillion, overtaking Japan’s $4.186 trillion.
Meanwhile, a recent report by JP Morgan said India has emerged as a relatively safe haven among emerging markets (EMs) amid global trade uncertainties. The report highlighted that India is benefiting from a combination of falling inflation, improved system liquidity, and lower government borrowing, which are expected to support economic growth.
The report adds that India is expected to post the highest GDP growth among countries in JP Morgan’s global universe in 2025. Growth is also being supported by timely demand stimulus and measures that have strengthened urban household balance sheets.
India’s real GDP grew by 6.5% in FY 2024-25, remaining the fastest-growing major economy in the world.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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