Deloitte projects India's FY26 growth at 6.4-6.7%, flags global risks

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Deloitte India on Tuesday projected India's economic growth at 6.4-6.7 per cent in the current fiscal citing robust domestic fundamentals and expanding global opportunities.

It, however, said that India must monitor its trade exposure and be prepared for the outcomes of geopolitical uncertainties  Strategic trade negotiations, notably with the UK in May and the ongoing talks with the US, and the highly anticipated deal with the European Union by the end of the year, will likely act as powerful multipliers of income, jobs, market access, and domestic demand.

India's economic growth was at 6.5 per cent in 2024-25.

Deloitte projects 6.4-6.7 per cent growth for FY 202526, driven by resilient domestic demand, easing inflation, and a bold push in domestic policy and global trade diplomacy, it said in a statement.

"India's economic trajectory stands out in a turbulent global landscape. Our momentum is driven by a virtuous trifecta, resilient capital markets, a dynamic consumer base and a globally competitive workforce," Deloitte India, Economist, Rumki Majumdar said.

The consultancy firm further said that India is taking strategic steps to expand its global trade presence.

Recent trade deals offer a strategic advantage: it is likely to deepen bilateral cooperation in areas such as AI, digital transformation, and innovation-led startups.

"As FY 202526 unfolds, India must monitor its trade exposure and be prepared for the outcomes of geopolitical uncertainties," Deloitte said.

The recent regional conflict and restrictions on critical minerals and specialised fertilisers are likely to affect the growth outlook.

"India's growth story will be driven by a combination of robust domestic fundamentals and expanding global opportunities, amid uncertainties," it added.