The Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday (December 7) said it anticipates the growth momentum witnessed in Q2 to persist over the next few quarters.
Official data released on Thursday reveals that India's economy grew by 7.6% in the September quarter, compared to 6.2% in the corresponding period last year.
Subhrakant Panda, President of FICCI, expects both governmental and reform continuity to go ahead. He foresees a mandate for the second phase of reforms and underscores the need for procedural changes to expedite activities in India.
"We expect not just continuity in government but also continuity in reforms. If you look at how fiscal and monetary policy has worked in tandem to boost the growth trajectory in India, we see that continuing as there are a lot of reforms that have taken place to enhance the ease of doing business, to reduce the cost of doing business.
I also believe there will be a mandate for phase 2 of reforms or deeper reforms. We also need to look at certain procedural reforms that hold up activity in India to an extent. But generally, I would commend the government for the lifting which it has done by way of front-ending the capex," Panda stated in an interview with CNBC-TV18.
FICCI also advocates for the continuation of the FAME scheme for electric vehicles (EV) and proposes a FAME III policy. The industry body warns against abruptly halting subsidies, which could potentially inflate EV prices by 25%.
Panda refers to the FICCI Manufacturing Survey, indicating that approximately 80% of respondents report increased activity, with 55-57% expressing plans for expansion or investment in the next six months. While global geopolitical conflicts pose a mild dampening effect, Panda remains optimistic about India's current position and future prospects.
Additionally, S&P Global Ratings predicts that India is poised to become the world's third-largest economy by 2030. The agency estimates India's GDP growth to be around 7% in 2026-2027.
Watch the accompanying video for the entire conversation.
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