The country is likely to experience improved capital flows, a boost in private investment and exports. Inflation concerns remain, but Deloitte expects them to ease in the latter half of the next fiscal, barring any surprises from rising oil or food prices, Rumki Majumdar, associate director and economist with Deloitte Shared Services India LLP, wrote in the company’s India Economic Outlook for August 2024.

Following a period of uncertainty in the first six months of the year, Deloitte believes 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.

Improved global liquidity conditions would improve capital flows and drive higher investments, especially in the private sector, it noted.

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

Policy push from the government will help address challenges being faced by the country, and reduced urban and rural spending gap is likely in the coming years resulting in a sustained growth in overall private consumption spending from a larger consumer base, Deloitte added.

Fibre2Fashion News Desk (DS)