India Inc confident of achieving $5 trillion economy: Deloitte survey ahead of budget

India Inc is confident of achieving a $5 trillion economy thanks to the central government's support for infrastructure investments, additional reforms and improved technology adoption, a pre-Budget survey by Deloitte Touché Tohmatsu India LLP (DTTI) showed.

About 50 percent of India Inc reflects optimism that India will post GDP growth of over 6.5 percent in 2024-25, marking the third consecutive year of fastest growth among major economies.

Among industrial sectors, automotive (50 percent), consumer and retail (66 percent), technology, media and telecommunications (47 percent) and energy, resources and industrials (44 percent) expect high growth.

Nearly 80 percent of leading companies in the automotive, consumer and retail industries expect a GDP growth rate of over 6 percent.

Providing a comprehensive overview of the business community's outlook, the pre-Budget survey provides valuable insights into their expectations, concerns and areas of advocacy for policy improvements.

With 230 responses from CXOs across industries, it provides a detailed analysis of critical factors affecting the economic landscape across various dimensions and growth drivers.

Research and development (R&D), improved technology adoption, skills, tax certainty and increased trade cooperation have emerged as key requirements for the next five years.

Nearly 99 percent of companies expect AI to evolve gradually, but require strict adherence to ethical practices. Approximately 100 percent of executives expect the government to prioritize environmental, social and governance (ESG) policies and initiatives.

Sanjay Kumar, Partner at DTTI, said: “As we overcome the challenges and opportunities outlined in the survey, the vision of a digitally empowered India becomes more tangible. Our survey results underscore the importance of innovation and collaboration in the pursuit of economic excellence and are consistent with our national goal of a $5 trillion economy. Together, through strategic technological advancements, we are poised to make doing business easier in the country and leave an indelible mark on the global stage.”

The survey also highlighted global headwinds and ongoing concerns about cost increases that require strategic action.

Business leaders emphasized the importance of targeted skills development, taking cues from the CXO survey and positioning India as an attractive, future-focused economy poised for significant growth.

Interestingly, the survey found that despite effective implementation, the Production Linked Incentive Scheme 2.0 has a participation rate of 15 percent, signaling the need for a better approach.

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