India Eyes 6.4–6.7% Growth in FY26 Despite Global Headwinds: Deloitte
Strong domestic demand, easing inflation, and global trade deals to drive India’s resilient economic momentum
Amid the US tariff threats, India’s economy is emerging as a bright spot despite global trade tensions and slowing growth in advanced economies and it is expected to grow between 6.4 per cent and 6.7 per cent in FY 2025–26. With an optimistic forecast to strong fundamentals and expanding global trade opportunities, the country’s economic growth is aided by resilient domestic demand, easing inflation, and a surge in services exports, Deloitte India said in its latest report on Tuesday.
This projection comes after the country's economy recorded a growth rate of 6.5 per cent in FY 2024-25. As per its India’s Economic Edge survey, the firm also noted that the country’s economic trajectory remains strong amid global volatility. “India must monitor its trade exposure and be prepared for the outcomes of geopolitical uncertainties,” the report said.
The consultancy firm, however, said that 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.
In a statement, Deloitte projects 6.4-6.7 per cent growth for FY 2025–26, driven by resilient domestic demand, easing inflation, and a bold push in domestic policy and global trade diplomacy. “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.
Deloitte also said that recent trade deals offer a strategic advantage. “It is likely to deepen bilateral cooperation in areas such as artificial intelligence, digital transformation, and innovation-led startups. As FY 2025–26 unfolds, India must monitor its trade exposure and be prepared for the outcomes of geopolitical uncertainties,” it said.