Romal Shetty, CEO of Deloitte South Asia, highlighted that India remains a bright spot amid a challenging global economic landscape and could achieve a 7% growth rate in the current fiscal year despite various headwinds. Shetty, the youngest CEO of a Big Four accounting firm in India, pointed out that inflation is under control, rural demand is picking up, and vehicle sales are improving, which will help sustain growth.
“We anticipate growth in the 7-7.1% range this fiscal. Although global challenges, like the geopolitical crises in the Middle East and Ukraine, as well as a slowdown in Western economies, may impact growth, India is still in a stronger position,” Shetty said. He added that while India is not entirely decoupled from the global economy, it continues to perform well compared to other nations.
Deloitte’s projections suggest that India’s growth might moderate to 6.7% in the next fiscal year (2025-26). The Indian economy saw an 8.2% growth in the previous fiscal (2023-24).
Shetty also expressed optimism about the Modi government’s continuation of economic reforms, particularly privatization, and praised the government’s efforts to expedite processes. He emphasized India’s potential to become a $5 trillion economy and the third largest in the world by the end of the decade.
Shetty noted that falling oil prices and potential U.S. Federal Reserve rate cuts could benefit India, given its status as a net importer. Additionally, he pointed out that India should focus on leveraging technology in agriculture to boost productivity and seek niche areas where it can dominate globally, positioning itself as the “services capital of the world.”
Addressing India’s long-term goal of becoming a developed nation by 2047, Shetty emphasized the need to raise per capita income from the current $2,500 to $20,000. He believes that once per capita income crosses $5,000, domestic consumption will increase significantly, transforming India’s economy into a more self-reliant one.
