Deloitte India Projects FY26 GDP Growth at 6.7–6.9% Amid Strong Domestic Demand

New Delhi, October 23: In its latest edition of the India Economic Outlook, Deloitte India has projected that India’s GDP may grow at 6.7 to 6.9% in the current fiscal year, with an average of 6.8%. The growth is likely to be driven by strong domestic demand, supportive policy reforms by the Indian government, and stable inflation in India.

RBI Also Projects GDP Growth at 6.8%

India’s economy grew by 7.8% in the first quarter of the financial year 2026 (April to June). This performance showcased India as one of the world’s fastest-growing major economies. As a result, Deloitte has increased its growth forecast for the full year by 0.3 percentage points. This is on par with the Reserve Bank of India’s forecast of 6.8% growth for the fiscal year.

The report highlights that India’s economy remains robust and continues to strengthen, despite uncertainties in the global environment. It projects similar growth for the coming year, although potential shifts in international trade and investment could cause actual growth rates to fluctuate.

Improved Purchasing Power Key Driver

According to Deloitte India economist Rumki Majumdar, the festive quarter is expected to witness a rise in consumption, supported by stronger purchasing power and a more favourable inflation outlook. This surge in demand is likely to be followed by robust private investment, as businesses gear up to meet the anticipated increase in consumer spending.

She added that by the end of this year, investor sentiment may further get a boost because of potential trade deals between the US and the EU.

Potential Risks

The report by Deloitte was not all positive, as it cautioned that there may be challenges due to increased trade tensions, limited supply of vital minerals, and other global factors. The report put emphasis on that India should focus on helping the MSME (Micro, Small, and Medium Enterprises) sector. This is important because these small businesses are key to creating jobs, boosting exports, and increasing income. As per Deloitte, strengthening MSMEs is crucial for keeping India’s economy growing steadily in the medium term.

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