PHDCCI is confident that Indian economy would continue its high growth path, clocking 6.8 per cent GDP growth this fiscal and 7.7 per cent next fiscal. 

The economy is on course to touch the $4 trillion mark this year, said Ranjeet Mehta, CEO & Secretary General of PHDCCI, after releasing a report on “New Year Economics PHDCCI Economic Outlook for 2025” in the Capital. 

Noting that the recent CSO’s first advance estimate of GDP growth for 2024-25 at 6.4 per cent was “conservative”, SP Sharma, Chief Economist and Deputy Secretary General, PHDCCI, said his optimism on economy doing much better this fiscal and also in 2025-26 came due to several reasons. 

“We expect the agriculture sector to do much better than the 3.8 per cent that CSO has estimated this fiscal. Also, government capex is expected to do much better in third and fourth quarter. Next fiscal I do see some base effect too bolstering growth for 2025-26 to 7.7 percent. Next fiscal we also expect exports to be much better,” Sharma added. 

Rate cut

PHDCCI is pitching for an interest rate cut of at least 25 basis points in the upcoming RBI MPC policy review meeting on February 5-7. 

“Indian economy remains resilient despite a subdued global economic outlook and persistent geopolitical challenges”, Mehta added. 

Sharma also said that Indian economy is on course to become the fourth largest economy in the world by 2026, surpassing Japan. 

An analysis done by PHDCCI showed that Indian economy will be the most resilient economy among the top ten leading economies in next three years (2025-27).