Budget must focus on consumption, capex, jobs

Indian share market fell sharply on concerns over Q3 earnings. This came on the heels of a lower-than-expected GDP growth estimate for 2024-25.

- Rajeev Jayaswal

Confederation of Indian Industry (CII) president Sanjiv Puri is confident that India's GDP will grow in the range of 6.4%-6.7%, but thinks there are five things the Union Budget could do to accelerate the country's growth.

Edited excerpts from an interview:

This Monday (January 6) In your assessment, what is the situation on the ground? Will we achieve a growth rate on the upper side of the official range of 6.5% to 7%?

Despite a challenging global environment, India's structural demand drivers are firmly in place, imparting resilience to the economy. CII expects the economy to grow in the range of 6.4-6.7% in FY25. While the forecast is lower than the 8.2% growth recorded in the previous fiscal, it reflects a transition to stable growth, as the pent-up demand from the pandemic subsides and the economy grows closer to its long-term potential. Moreover, the growth forecast remains reasonably healthy in the face of the rising global uncertainties.

With a continued emphasis on reforms and support from the domestic demand drivers of consumption and investment, we expect the Indian economy to move to a higher growth trajectory in the next year.

What could the Union Budget do to sustain and accelerate economic growth?