https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Deloitte Projects India’s FY26 Growth at 6.5–6.7% on Back of Tax Incentives, Despite Global Trade Uncertainty

Deloitte stated that economic outlook for FY26 will depend on the balancing act between emerging global trade relations and government-led efforts to spur domestic consumption
Indian Masterminds Stories

Deloitte has projected India’s economic growth at 6.5–6.7 percent for the current fiscal year, citing a boost in domestic demand due to tax incentives announced in the Union Budget 2025, even as global trade uncertainties continue to pose risks.

Also Read: NSE Pledges Rs 1 Crore to Support Families of Pahalgam Terror Attack Victims

The consulting firm pegged India’s GDP growth for FY25 at 6.3–6.5 percent and noted that the economic outlook for FY26 will depend on the balancing act between emerging global trade relations and government-led efforts to spur domestic consumption.

“Growth this fiscal will be contingent on two opposing forces,” Deloitte stated in its India Economy Outlook. One key positive driver is the tax incentives introduced to enhance consumer spending, while the main challenge is the volatility in global trade networks.

According to Deloitte, the Rs. 1 lakh crore tax incentive announced in the FY26 Budget is aimed at benefiting the middle class and stimulating spending. Despite the tax cuts, Deloitte expects heightened economic activity to make up for revenue losses, helping the government maintain its fiscal deficit targets.

Ms. Rumki Majumdar, Economist at Deloitte India, remarked, “The tax exemptions announced during the budget will increase disposable income in the hands of the young population with higher income elasticity.”

On the trade front, Deloitte highlighted potential setbacks stemming from tariff uncertainties. It noted that depending on the outcome of India’s trade negotiations, especially with the United States, reciprocal tariffs could range from 10 percent to 26 percent.

Ms. Majumdar added, “Depending on India’s ability to negotiate with the US and come up with a bilateral trade agreement quickly, trade tariffs may potentially shave 0.1–0.3 percent off India’s growth.”

Deloitte concluded that securing a bilateral agreement with the US by this fall could open new opportunities and cushion India from the fallout of global trade disruptions.

Also Read: NHAI to Develop 6-Lane Agra-Gwalior Greenfield Expressway on BOT (Toll) Mode 


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
POWERGRID Award
POWERGRID Honoured at CII-CWL Gender Parity Business Awards 
Uttar Pradesh Police (UP)_resized
UP Govt Orders Probe into Clean Chit for CO Sambhal Anuj Chaudhary Following Ex-IPS Complaint
IAS Officers Indian Administrative Services (IAS)
Uttarakhand Government Promotes IAS Officer Sujata Following High Court's Contempt Warning
LabourDay2025
Labour Day 2025: Here’s how PSU’s Celebrated the toil of their Workforce
U Sagayam IAS
IAS Officer U Sagayam Declines to Appear in Granite Scam Case Citing Threat to Life
NBCC
NBCC Bags Rs. 95.66 Crore Renovation Contract from Sushma Swaraj Institute of Foreign Service
MOIL
MOIL Ltd Posts 27% Surge in Q4 Profit; Recommends Final Dividend of Rs 1.61
Coal Production (resized)
India’s Coal Production and Dispatch Rose Steadily in April 2025
ADVERTISEMENT
ADVERTISEMENT
Videos
IMG-20250429-WA0019
How Mission IAS is Transforming Dreams of Underprivileged UPSC Aspirants
Aakash Garg
Computer Engineer Aakash Garg Takes AIR-5 in UPSC CSE 2024 Through Sheer Discipline And Hard Work | Exclusive
Sandeep M Tamgadge
How IPS Sandeep M Tamgadge’s Journey Can Guide Your UPSC Preparation
ADVERTISEMENT
UPSC Stories
Ashi Sharma
How an Architect Ashi Sharma Redesigned Her Future
After shifting from architecture to civil services, Ashi Sharma cracked the UPSC with AIR 12 in her third...
Ravi Raj, from Nawada, Bihar
Visually Impaired Ravi Raj Cracked AIR 182 With His Mother’s Assistance
She used to read out the syllabus to Ravi Raj. She used to prepare subject-wise notes for him. She also...
WhatsApp Image 2025-04-29 at 13.32
Born Without Sight, But Never Without a Dream: Manu Garg, AIR-91, CSE 2024
He lost his sight, but not his vision. Manu Garg’s journey to securing AIR-91 in UPSC CSE 2024 lit a...
Social Media
IAS Pulkit Garg
Central Jail Road Transforms into a Vibrant People-Centric Street in Varanasi
This road has been given a soul, the soul of a musical path, adorned with pink enamel folk art and every...
Rajan Singh Ex-IPS
Ex-IPS Officer Rajan Singh Shares Powerful Insight on Influence through Action
Mr. Rajan Singh is an ex-IPS officer of the 1997-batch (Kerala cadre) and founder of HabitStrong Org...
Exam Student Aspirant
'Bramhastra' For Aspirants Appearing for UPSC Prelims Exam 2025, ICLS Officer Altap Shaikh Shares Final Month Strategy
Officer Shaikh's practical and focused suggestions come as a timely morale booster for thousands of candidates...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
POWERGRID Award
POWERGRID Honoured at CII-CWL Gender Parity Business Awards 
Uttar Pradesh Police (UP)_resized
UP Govt Orders Probe into Clean Chit for CO Sambhal Anuj Chaudhary Following Ex-IPS Complaint
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IMG-20250429-WA0019
Aakash Garg
Sandeep M Tamgadge
ADVERTISEMENT
ADVERTISEMENT