Indian Economy
Amid the signs of recession in the world, the Indian economy will maintain its growth pace without stopping, without getting tired. Deloitte South Asia Chief Executive Officer (CEO) Romal Shetty has said that India remains a bright spot amid the disappointing global scenario. He said that the country can register a growth of seven percent in the current financial year (2024-25) despite the adverse circumstances. Shetty, the youngest CEO of the ‘Big Four’ accounting and consulting companies in India, said that inflation is largely under control, rural demand has increased and vehicle sales are improving. He said, “We believe that we will be in the range of 7-7.1 percent in terms of growth (in the current financial year). You have many adverse conditions, many favorable conditions but the fact is that despite whatever is happening globally, India is still in a better position, but we cannot say that we are different from the world.”
The impact of the ongoing war on global growth
He said that the geopolitical crisis in West Asia and Ukraine and the recession in the Western world will affect the growth of the gross domestic product (GDP). According to Deloitte’s estimates, the growth rate is likely to be 6.7 percent in the next financial year (2025-26). In the last financial year 2023-24, the Indian economy grew at the rate of 8.2 percent. Shetty said that he hopes that the Narendra Modi government 3.0 will continue economic reforms including privatization at the same pace and tremendous efforts will be made to complete the work within government departments.
India will become the third largest economy
India, the world’s fifth largest economy, will expand to $5 trillion within this decade to become the third largest economy. The fall in crude oil prices is in some ways a good thing for India as India is a net importer of many commodities and the reduction in interest rates by the US Federal Reserve will be positive for India. Shetty said India will become the service capital of the world and the country will have to focus on the use of technology in agriculture to increase productivity and find specific areas where India can establish its dominance at the global level.
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