India’s Economic Outlook

India's economy is rebounding with resilience as the dust settles from a high-stakes election period. Deloitte forecasts 7.0%-7.2% growth for FY 2024-2025 supported by increasing consumer spending, especially in rural India, as inflation subsides, and agricultural output improves after favourable monsoon conditions.

Our latest outlook report also focuses on India’s labour market trends, particularly the impact of the pandemic and its subsequent recovery. The labour data points to some green shoots, with a rising share of salaried positions and of services subsectors demanding higher qualifications, including business and professional services in the areas of technology and finance. Female participation in the labour force has also increased, particularly in rural areas.

We believe the government’s focus on boosting manufacturing and improving youth employability, coupled with India’s young and aspirational population, presents a unique opportunity for economic growth. As the country advances toward becoming a US$5 trillion economy, expanding manufacturing and emerging industries and transitioning toward clean-energy alternatives will likely create high-quality, formal, and green jobs. This will help many Indian states that are aspiring to grow rapidly, as they are already investing in these areas to tap into India’s demographic advantage.