World There is a possibility of recession in many countries due to geopolitical tensions. At the same time, the Indian economy is going to perform well in this new financial year also. This strength in the Indian economy is due to middle class consumers. This information has been received from the report of Deloitte India. According to the report, the purchasing power of the middle class in India has increased due to the rapid increase in income. Demand for premium luxury products and services has also arisen. Due to this the Indian economy is in good condition. Deloitte India has estimated India’s gross domestic product (GDP) growth rate to be 6.6 percent in the current financial year 2024-25. Increase in exports and capital inflow will be the main factors in this.
Purchasing power of Indians increased
Deloitte, in its report on India’s economic outlook, said that the rapid growth of the middle income group has increased purchasing power. Deloitte has revised India’s economic growth forecast for the last financial year to between 7.6 and 7.8 percent. In January, the company had estimated growth to be in the range of 6.9 to 7.2 percent in fiscal year 2023-24. Deloitte said in its quarterly economic outlook that the country’s GDP growth is expected to reach about 6.6 percent in the financial year 2024-25 and 6.75 percent the following year. Markets are learning to take geopolitical uncertainties into account in their investment and consumption decisions.
Central bank will cut interest rates
Deloitte India economist Rumki Majumdar said the global economy is expected to see a synchronized turnaround in 2025 as key election uncertainties fade away and central banks in the West may announce some rate cuts later in 2024. India is also likely to see an improvement in capital inflows and a surge in exports. Majumdar said that on the back of strong economic activity, inflation is expected to remain above the Reserve Bank of India’s target level of four percent in the forecast period.
Better performance than the world
Moody’s has also projected India’s economy to grow at 6.1 percent in 2024. Economies of South and Southeast Asia will see the strongest output gains this year, but their performance will be affected by the delayed recovery from the global pandemic, Moody’s Analytics said in its report titled ‘APAC Outlook: Listening through the Noise’. Has happened. The report said that overall the region is performing better than other parts of the world.
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