FICCI President Anish Shah bullish on India, predicts 8% GDP growth in FY25

Anish Shah, President of the Federation of Indian Chambers of Commerce & Industry (FICCI) and Managing Director of Mahindra Group, is optimistic about India's economic prospects, anticipating a GDP growth of 8% in the fiscal year 2025.

He attributes this positive outlook to several factors, including increased government capital expenditure and infrastructure development, leading to a multiplier effect.

“We do think that India is in a sweet spot. We are seeing a much greater momentum that is building up. So I would actually venture to say that we will likely cross the 8% GDP growth next year (FY25). Some of the key drivers are starting with the government capex and the infrastructure that they are putting in, and the multiplier effect that is related to that. Private capex has lagged behind a little but there are a number of sectors that have put in a lot more investment and are increasing capacity. We see more private capex coming in as well,” Shah stated in an interview to CNBC-TV18.

Official data released on November 30 indicates that India's economy grew by 7.6% in the September quarter, compared to 6.2% in the same period the previous year.

The Reserve Bank of India, in its recent Monetary Policy Committee meeting, raised the growth projection for the country's GDP to 7% for the 2023–24 fiscal year.

Shah highlights two key trends shaping India's economic landscape. First, Indian manufacturers are focusing on producing world-class products through increased research and development, aiming not only to serve the domestic market but also to compete globally. Second, he emphasises global companies looking for diversification of supply chains and thereby putting in more capital in India.

Shah also hails the government's Viksit Bharat initiative, envisioning a robust manufacturing sector contributing 25% to the economy by 2047, compared to the current 15%. He adds that while everyone is talking about India being a $5 trillion economy by 2025, the country is planning to grow to a $30 trillion economy by 2047.

Reflecting on previous budgets, Shah commends the government's economic focus over political considerations. He expresses hope that the high expectations set by the past two budgets, which emphasised infrastructure development, manufacturing capacity enhancement through Production-Linked Incentive (PLI) schemes, and an improved business environment, will continue in the upcoming 2024 budget.