India's Economic Momentum: Resilience Amid Global Challenges

India is set to maintain its commanding position among rapidly growing economies, according to a Deloitte report highlighting the nation's resilient capital markets, bustling domestic consumption, skilled digital workforce, and expanding trade partnerships. Despite global uncertainties, India's economic strategies continue to outperform its peers.

The nation concluded FY2024-25 with a robust 6.5% growth, bolstered by a significant 7.4% upsurge in the final quarter. This rate, although seemingly slower than previous years' figures of 9.2% and 7.6%, is seen by analysts as a stabilization rather than a slowdown, considering high base effects. The sustained strength in private consumption, investments, services exports, and capital markets positions India well for continued leadership in FY2025-26.

India's capital markets, after weathering significant outflows, experienced a robust revival starting April 2025. Data from MSCI indicate that Indian equity markets have doubled in value since 2019, overshadowing most emerging markets. Domestic investors and renewed foreign portfolio inflows reiterate India's appeal as a long-term investment destination. Additionally, domestic consumption exceeded 61% of GDP during FY2024-25, supported by easing inflation, moderate monetary policy adjustments, and growing urban middle-class demands.

The report also underscores India's status as a global hub for high-skilled services, driven by a digitally adept, young workforce. Boasting the second-highest AI skill penetration after the US, and hosting over 1,700 Global Capability Centers, India strengthens its innovation and resilience in service exports. Trade diplomacy remains crucial as India aims to expand export opportunities with new partnerships, like the UK deal concluded in May 2025, and ongoing US negotiations seeking to lower tariff barriers.

While challenges such as pre-election policy caution, uneven rainfall, and global trade volatility subdued growth earlier, Deloitte forecasts a GDP growth for FY2025-26 between 6.4% and 6.7%. India's consistent performance is expected to continue, supported by robust market dynamics, consumer demand, and competitive digital empowerment amid a complex global economy landscape. (ANI)

(With inputs from agencies.)