Despite a challenging global economic landscape, India’s economy has not only weathered the storm but thrived. The Union Budget 2024 revealed a resilient and dynamic economy, according to a Deloitte report.
India’s economic landscape is flourishing, with GDP growth hitting 8.2 per cent in FY24 and projected to remain strong, a Deloitte report stated. The Union Budget 2024 reinforces the positive trajectory, outlining strategic measures for fiscal consolidation and targeted investments. Key indicators from Deloitte’s latest report reveal a thriving economy, with moderating inflation, increasing FDI inflows, a stable currency, and burgeoning industrial growth.
Here are key highlights from Deloitte’s economic indicators:
Inflation easing: Consumer price index (CPI) inflation has moderated to 5.4 per cent in FY24, down from 6.7 per cent in FY23, and is projected to decline further to 4.5 per cent in FY25.
Fiscal consolidation: The fiscal deficit is estimated to shrink to 4.9 per cent of GDP in FY25, with a target of below 4.5 per cent by FY26.
Strong foreign investment: Despite a slight dip in overall FDI inflows, the infrastructure and power sectors saw FDI double in FY24.
Stable currency: The Indian rupee remained relatively stable against the US dollar, depreciating by only 3 per cent in FY24.
Industrial growth: The industrial sector experienced a significant boost, growing by 9.5 per cent in FY24, led by manufacturing and construction.
AI-driven FDI: India has emerged as a leading destination for artificial intelligence (AI)-related foreign direct investment (FDI), attracting 122 AI-related projects in 2022.
Forex reserves: The country’s foreign exchange reserves reached a record high of US$652.0 billion in June 2024, providing a comfortable buffer against external shocks.
Stock market confidence: India’s stock market capitalisation to GDP ratio is ranked fifth globally, reflecting growing investor confidence.
Finance Minister Nirmala Sitharaman etched her name in history on July 23 by presenting her seventh consecutive Union Budget, a feat unmatched by any finance minister before her.
Sitharaman surpassed the record of former Prime Minister Morarji Desai, who delivered six consecutive budgets. Sitharaman unveiled a budget focused on easing the burden on taxpayers. Increased standard deductions and revised tax rates under the new tax regime will be a boost for the salaried class.
The budget also brings good news for consumers, as customs duty on a range of items, including gold, silver, and mobile phones, has been reduced.
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