India Inc aims for $5 trillion economy: Deloitte survey highlights confidence and strategic focus

$5 trillion economy: India Inc expresses confidence in the prospect of achieving a $5 trillion economy, propelled by infrastructure investments, additional reforms, and increased technology adoption, as per a CXO survey conducted by Deloitte Touche Tohmatsu India LLP.

Deloitte's statement outlines that approximately 50 per cent of India Inc remains optimistic about the country achieving over 6.5 per cent growth in FY25, with business leaders expecting robust economic growth for the next fiscal year.

Among industry sectors, automotive (50 per cent), consumers and retail (66 per cent), technology, media, and telecommunication (47 per cent), and energy, resources, and industrials (44 per cent) anticipate high growth.

The statement notes that government initiatives, trade collaborations, reduced logistics costs, and policies promoting industrial production, including intelligent automation and sustainable technologies, contribute to this momentum. Changing consumer preferences and strong demand in tier-2 and tier-3 cities also play a role in shaping this positive outlook.

Deloitte emphasises that India is poised to strengthen its position as a global hub for innovation and research, with government support for initiatives focusing on the pivotal role of research and development (R&D).

As leaders anticipate significant growth in the semiconductor industry, there is a call for a comprehensive, long-term policy framework from the government to attract investments. About 64 per cent of respondents advocate for R&D support for local companies, while 57 per cent underscore the significance of an effective Intellectual Property Rights framework.

The survey highlights the increasing importance of Artificial Intelligence (AI) in modern business, with 99 per cent of businesses expecting AI to evolve. Around 70 per cent of consumer and retail businesses are urging government support to regulate AI use, emphasising strict adherence to ethical practices in data and methods.

Leaders also anticipate the government prioritising the implementation of Industry 4.0 technologies, along with continuous efforts in more skill development initiatives, particularly in upskilling and nurturing talent in tier-2 and 3 cities.

To foster India’s growth and ensure sustained business expansion and more foreign investments, approximately 80 per cent of leaders emphasise the continuity of tax certainty. The survey findings underscore the importance of innovation and collaboration in pursuing economic excellence.

Sanjay Kumar, Partner, Deloitte Touche Tohmatsu India LLP, notes, "As we navigate the challenges and opportunities outlined in the survey, the vision for a digitally empowered India becomes increasingly tangible."

"Through strategic technological advancements, we are poised to elevate the ease of doing business in the country and leave an indelible mark on the global stage," he concludes.

Environmental, Social, and Governance (ESG) initiatives remain a priority, with 100 per cent of respondents emphasising the importance of renewable energy. Leaders expect the government to prioritise investing in ESG strategies and initiatives, followed by technological innovations, infrastructure development, and skill enhancement. Approximately 90 per cent of businesses also want technological innovation in government processes and operations.

The survey also highlights global headwinds and continued concerns about cost escalation, emphasising the need for strategic measures.

(With PTI inputs.)