New Delhi [India]May 1 (ANI): According to the latest forecast by Deloite, India’s economic growth is expected to be stable at 6.6 percent in FY 2015-26.
The Global Consultancy firm stated that the development approach for India would be shaped by a balance of stimulation and uncertain global business conditions by a balance act.
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It stated, “Deloite estimated an increase of 6.6 percent in growth as tax stimulation partially stops the impact of trade uncertainty, which promotes India’s economic outlook for FY 2016, which is on a delicate balance between trade relations and government efforts to promote domestic consumer demand.
It was noted that the Indian economy showed flexibility despite a slowdown in 6.1 percent year-long growth by Q3 of FY2025.
This moderation was mainly due to uncertainty, unusual rainfall in the first half of the year and instability in global trade in the first half of the year.
However, the revised data shows that FY2023-24 recorded an increase of 9.2 percent supported by strong domestic demand.
Indicators such as the Goods and Services Tax (GST) collection, automobile sales, and rapidly growing consumer goods (FMCG) sales raise in recent months, suggest strong underlying speed in the economy.
According to Deloite, India’s economic performance in FY 26 will be conducted by two opposing forces.
On the one hand, the tax incentive launched in the Union Budget 2025 is expected to promote consumer expenses.
The government has announced the income tax deduction, which will cause revenue loss of Rs 1 trillion annually. The move aims to increase disposable income for middle class houses and consume consumption.
On the other hand, global trade uncertainty pose risk to development. India face 10 percent of advertisement Velum Base Tariff on its exports, which connects the 2023 business-loaded the most preferred nation (MFN) tariff rate of 2.2 percent, making the effective rate to 12.2 percent.
An additional mutual tariff of up to 16 percent – stopped for three months – can increase this burden by 28.2 percent by the end of FY 26.
Deloite said that in the coming months, a lot will depend on the result of the US-India trade talks.
It said, “India effectively navigate the upcoming bilateral agreement, depending on the total mutual tariffs from 26 percent to the high medium 10 percent, or elsewhere the land can range from the middle”
Deloite remains cautiously optimistic, given that trade headwinds can affect export performance, affect domestic demand from tax deduction – strengthening India’s development trajectory in FY 26. (AI)
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