Synopsis Deloitte India predicts that the country’s GDP growth for the current fiscal year will be between 6.5-6.8%, driven by festive spending and increased government expenditure ahead of the national elections in 2019. The report also states that India needs at least 6.5% growth each year to become the world’s third largest economy by 2027, and 8-9% growth to become a developed country by 2047. Deloitte highlights the importance of domestic demand, particularly private consumption and investment spending, to fuel India’s growth amidst geopolitical uncertainties and a global economic slowdown. Agencies Deloitte India on Wednesday said it expects GDP growth in the current fiscal to be in the range of 6.5-6.8 per cent primarily due to upcoming festive spending as well as higher government expenditure before the national elections mid-next year. In its India economic outlook report, released earlier this month, Deloitte said India will need at least 6.5 per cent growth every fiscal to become the world’s third largest economy by 2027, with its Gross Domestic Product (GDP) crossing USD 5 trillion. The country needs 8-9 per cent economic growth to become a developed country by 2047, it added. The Indian economy grew 7.8 per cent in the June quarter, higher than the 7.2 per cent in the year-ago period. “In light of the Q1 GDP growth, we have revised our growth estimate for this year to reflect it. We expect GDP to grow in the range of 6.5-6.8 per cent primarily due to festive spending in the coming months followed by higher government spending before the upcoming national elections mid-next year,” Deloitte India said. Deloitte India Economist Rumki Majumdar said navigating geopolitical uncertainties and the slowdown in global economy, undoubtedly, would not be easy. India will have to rely on its own domestic demand to firepower its growth, specifically, private consumption and investment spending, she said. “What works in India’s favour on the private consumption front are the size of its consumer base, the rising income, and the aspirations of its young population, which is the largest in the world. “As for investments, with the size and scale of operations it has to offer to global companies, the availability of skill and talent, technology and innovation capabilities, India continues to be an attractive investment destination,” Majumdar said. India, with a GDP size of USD 3.4 trillion, is the fifth largest economy in the world, after US, China, Japan, and Germany. Deloitte said India’s GDP growth will be over 6.5 per cent next year as geopolitical uncertainties subside, and the global economy bounces back on a stronger growth path. Deloitte said India’s micro, small, or medium enterprises ( MSME ) will be key in generating income, capabilities, capacities, and ecosystems needed for sustained growth in consumption and investment that is broad-based and comes from all sections of the economy. The MSME sector will also drive innovation and new opportunities in a cost-effective manner. It will drive job creation and entrepreneurship, especially for women in rural India, it added. Print Edition Wednesday, 18 Oct, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics ET Markets Smart Investing Learn more about our print edition More Orient Promoter Birla Taps Adani to Cement Biz Sale Industrialist CK Birla has approached Gautam Adani to sell his promoter stake in listed Orient Cement after rejecting initial offers from other domestic players for failing to meet his valuation demand, people aware of the talks told ET. SC Refuses to Legalise Same-Sex Union, Leaves it to Parliament The Supreme Court on Tuesday refused to legalise same-sex marriages, ruling that there is “no unqualified right” to marriage under the Constitution and that it lies in the domain of the Parliament to enact laws to validate such unions. Telecom Majors likely to Plead for Review India’s top telcos are expected to file a review petition against the Supreme Court’s ruling to treat licence fees as a capital expenditure that could potentially prompt authorities to raise hefty retrospective demands, including penalties on operators for tax payment shortfalls of past periods. Read More News on india deloitte upcoming national msme deloitte india rumki majumdar world s third (Catch all the Business News , Breaking News Events and Latest News Updates on The Economic Times .) Download The Economic Times News App to get Daily Market Updates & Live Business News. … more less ETPrime stories of the day Family business Succession is a bullet every family business has to bite. How can they prepare for it? 5 mins read Under the lens Founder exits, user slump, and competition: inside the playbook of India’s largest Web3 firm Polygon 11 mins read Electric vehicles How silicon carbide chips could give Chinese EV firms an edge 11 mins read Subscribe to ETPrime

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