India Poised for Robust Economic Growth Amid Policy Reforms and Consumer Demand Shifts

India's economy is projected to grow at 7-7.2% in the current fiscal year, driven by solid economic fundamentals and consistent policy reforms, according to Deloitte India. The Union Budget 2024-25 initiatives focusing on agriculture, job creation, and MSME finance are expected to boost supply-side demand, curb inflation, and enhance consumer spending.

India's economy is forecasted to grow at a rate of 7-7.2% for the current fiscal year, according to Deloitte India, largely due to robust economic fundamentals and continuous domestic policy reforms.

The firm's August update on the India Economic Outlook highlights key initiatives from the Union Budget 2024-25, which aim to improve agricultural productivity, create jobs for youth, address MSME finance challenges, and bolster supply-side demand. These measures are expected to curb inflation and elevate consumer spending, particularly in rural regions.

Deloitte India Economist Rumki Majumdar predicts stronger growth in the latter half of the year, propelled by a stabilization in global markets and improved capital flow conditions. She notes that more synchronous global growth and a low inflation regime will further enhance investments, especially in the private sector.

(With inputs from agencies.)