Hyderabad: India’s GDP is likely to grow at 6.5% in the current financial year, according to an estimate by the Confederation of Indian Industry (CII). Despite ongoing geopolitical uncertainties, the economy remains on track for stable growth, CII president Sanjiv Puri said.
In an interview to national media, Puri noted that rising global trade challenges make it important for India to continue bilateral trade agreements with key partners to protect its national interests. He said private investment was seeing momentum in sectors like energy, transportation, metals, chemicals, and hospitality.
While geopolitical tensions could cause short-term disruptions to investment flows, Puri said these effects were expected to be temporary. “We foresee normalisation over time, and hence the projection of 6.5% GDP growth stands,” he added.
Other positive indicators include the Reserve Bank of India’s recent interest rate cuts and declining inflation. Puri also pointed to measures in the latest Union Budget, including higher income tax exemptions, which are expected to drive consumer demand significantly.
He said both government and private sector capital expenditure were rising in tandem, creating a supportive environment for medium-term economic expansion.