India’s economy is poised for robust expansion this fiscal year, with Deloitte’s October 2025 outlook projecting GDP growth in the range of 6.7% to 6.9%. The report credits a combination of strong domestic fundamentals—rising direct tax exemptions, steady GST reforms, and an accommodative monetary policy—for sustaining confidence and supporting broad-based growth. Deloitte also notes that a possible trade agreement between India and the United States could act as a major external catalyst, potentially accelerating economic activity further.
The fiscal year began on an upbeat note with GDP expanding 7.8% in the April–June quarter, surpassing market expectations. This performance was powered by a 7% rise in private consumption and a 7.8% increase in investment activity, signalling renewed optimism among consumers and businesses. The services sector continued to be the backbone of the economy, recording 9.3% growth, while manufacturing posted healthy gains, reinforcing signs of a comprehensive recovery.
A key highlight of Deloitte’s report is the growing strength of India’s Micro, Small, and Medium Enterprises (MSMEs). Describing them as the “bedrock” of India’s growth story, the report praises their rapid formalisation, expanding digital footprint, and world-class adoption of digital payments—all of which are helping MSMEs climb the value chain and boost export competitiveness.
