India is expected to grow at 7-7.2 per cent in FY25 in the baseline scenario, followed by between 6.7 per cent and 7.3 per cent in the subsequent years, Deloitte India economist Rumki Majumdar wrote on its website.

“Following a period of uncertainty in the first six months of the year, we believe India will see very strong growth in the second half. Some of the key contributing factors would be the continuity in domestic policy reforms, reduced uncertainties in the United States after elections, and a more synchronous global growth in a low inflation regime,” she wrote.

“Improved global liquidity conditions would improve capital flows and drive higher investments, especially in the private sector. A synchronous global economic recovery next year will likely help improve exports,” she wrote.

Inflation concerns are likely to fade as Deloitte expects food price-driven pressures to ease in the latter half of the year, she said.

Deloitte expects inflation to slowly revert to the central bank’s target level of 4 per cent from early next year.

Fibre2Fashion News Desk (DS)