Mumbai - Deloitte India has said it expects GDP growth in the current fiscal to be in the range of 6.5-6.8 per cent primarily due to upcoming festive spending as well as higher government expenditure before the national elections mid-next year. In its India economic outlook report, released earlier this month, Deloitte said India will need at least 6.5 per cent growth every fiscal to become the world’s third largest economy by 2027, with its Gross Domestic Product (GDP) crossing USD 5 trillion.

The country needs 8-9 per cent economic growth to become a developed country by 2047, it added.

The Indian economy grew 7.8 per cent in the June quarter, higher than the 7.2 per cent in the year-ago period.

Deloitte India Economist Rumki Majumdar said navigating geopolitical uncertainties and the slowdown in global economy, undoubtedly, would not be easy.

India will have to rely on its own domestic demand to firepower its growth, specifically, private consumption and investment spending, she said.

“What works in India’s favour on the private consumption front are the size of its consumer base, the rising income, and the aspirations of its young population, which is the largest in the world.

India, with a GDP size of USD 3.4 trillion, is the fifth largest economy in the world, after US, China, Japan, and Germany.

Deloitte said India’s GDP growth will be over 6.5 per cent next year as geopolitical uncertainties subside, and the global economy bounces back on a stronger growth path.