Archive · 6 Aug 2025
Deloitte Lowers India's FY26 Growth Forecast Amid Trade Concerns
Deloitte, an expert company, thinks India's economy won't grow as fast as they thought before.
They're worried because the US is making it harder for India to trade.
They now believe the economy will grow a little slower, maybe around 6.4% to 6.7%.
This is because of things like the US tariffs.
Other groups like the IMF and RBI have also changed their growth predictions.
India still has a strong consumer market and good investments, even though there's some uncertainty.
Deloitte India revised its FY26 growth forecast downward, citing trade tensions.
The revised growth forecast is now between 6.4% and 6.7%, from an earlier projection of 6.5% to 6.7%.
The revision follows US tariffs on Indian exports and the threat of more trade measures.
The IMF raised its FY26 projection, while RBI and ADB also adjusted their estimates.
India's economy is driven by consumption and strong capital markets, but faces global uncertainties.
- Who
- Deloitte India and various global financial institutions.
- What
- Deloitte India's revised growth forecast for FY26.
- When
- Tuesday
- Where
- India
- Why
- Due to rising trade tensions and global uncertainties, especially US tariffs.
Impact of Trade Tensions
India's Economic Strengths
Economic Outlook
Impact of Trade Tensions
Trade tensions with the US have created uncertainty for India's economic growth.
India's Economic Strengths
India's strong domestic fundamentals can partially offset the trade impact.
Growth Factors
Impact of Trade Tensions
Increased tariffs and trade restrictions will cause lower growth.
India's Economic Strengths
Consumption and robust capital markets will drive some growth.
- Revised Growth Forecast
- 6.4% - 6.7% for FY26
- Previous Forecast
- 6.5% - 6.7%
- Reason for Revision
- Trade tensions and geopolitical uncertainty
- US Tariff on Indian Exports
- 25%
- IMF FY26 Projection
- Raised to 6.4%
- Market Cap-to-GDP Ratio
- 136% as of Dec 2024
Sources
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