New Delhi, July 3, 2025 – The Confederation of Indian Industry (CII) has forecast India’s economic growth at 6.4–6.7% for the current financial year, driven primarily by robust domestic demand—even as global uncertainties loom .
🔹 Drivers Behind the Optimism:
- Liquidity cycle: Reserve Bank of India’s recent cuts to the Cash Reserve Ratio (CRR) and benchmark interest rates have freed up liquidity to fuel credit growth .
- Domestic activity: Strong private investment across sectors like energy, transportation, chemicals, and services, supported further by public capital expenditure.
- Fiscal stimulus: April 2025 tax relief measures have buoyed household incomes, boosting consumption.
- Favourable monsoon: A good rainfall season is expected to strengthen rural demand and agriculture’s contribution to growth.
📌 Key Policy Calls by CII:
- Public capex beyond ₹11 lakh crore: CII urges a 25% increase in central government capital expenditure to sustain momentum .
- Tax simplification: Introducing a streamlined GST structure and comprehensive reforms to bolster ease of doing business .
- Trade and competitiveness: Negotiating new bilateral trade deals with the U.S., EU, and UK; rationalising tariffs; promoting disinvestment; and nurturing manufacturing.
- Tech & sustainability: Emphasising R&D and green growth, with improvements in infrastructure, agriculture, manufacturing, and climate initiatives.
🧭 What This Means:
- Resilient Growth: India continues to be the fastest-growing major economy, showing strength despite geopolitical risks.
- Balanced Model: The blend of public spending, private investment, and consumption-led recovery signals a stable trajectory .
- Strategic Reforms Ahead: Industry’s policy priorities—capex, trade, fiscal prudence, taxation, and ease of doing business—are expected to feature prominently in the upcoming Union Budget and economic agenda.
