The Indian economy, according to International Monetary Fund (IMF) estimates, will emerge as the world’s third-largest economy by 2027
Projecting a positive outlook for the domestic economy, Deloitte India in its latest economic outlook has estimated India’s growth rate between 6.5 to 6.8 per cent primarily due to festive spending and higher government spending in the coming months.
The report predicted a 6.5 per cent gross domestic product (GDP) growth rate for the economy during 2024-25, which could further increase with a stronger global economic bounce back.
The Indian economy, according to International Monetary Fund (IMF) estimates, will emerge as the world’s third-largest economy by 2027 by surpassing Japan and Germany as its GDP crosses the USD 5 trillion mark.
However, India will need to grow at least 6.5 per cent to reach this milestone by 2027. The current buoyancy in economic growth gives confidence that the economy is likely to achieve these numbers without hurdles.
“Navigating geopolitical uncertainties and the slowdown in the 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. 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,” said Rumki Majumdar, Economist, Deloitte India.
Majumdar added that as for investments, with the size and scale of operations it offers to global companies, the availability of skill and talent, and technology and innovation capabilities, India continues to be an attractive investment destination.
The outlook further highlighted the crucial role of India’s micro, small and medium enterprises (MSMEs) in the country’s economic growth. The past two quarters have seen an uptick in the MSME sector. Out of the shadow of the pandemic, the steady revival of this sector will likely help India achieve broad-based growth at the grassroots levels, which is needed to ensure sustained economic activity.