GDP Growth Likely To Fall Below 6.5%: Deloitte Survey

As the entire globe braces for the upcoming global recession, India's gross domestic product (GDP) is likely to fall below 6.5 per cent, as per a survey report by Deloitte India.

The survey revealed that the upcoming global recession caused by the geopolitical turmoil post-Covid-19 and soaring energy, food, and labour costs are major deterrents to economic growth.

Talking about the headwinds to growth, the respondents believe that the skilled talent shortage will have a detrimental impact on the overall progress of the services sector.

As per the respondents, supply chain delays, poor infrastructure and high indirect costs are likely to impact business operations. 

"This requires government intervention to develop a revitalised digitally powered procurement operating model,'' the survey added.

Also, spillovers from the Russia-Ukraine war and global monetary policy tightening will hurt the money supply in the economy.

"The fear of subsequent variants of Covid-19 might prompt consumers to enable savings and likely to reduce the private demand," revealed the survey.

Notably, it also stated that a slowdown in manufacturing industries driven by increased input costs from international markets will stifle industrial growth.

Meanwhile, the economic growth is expected to be above 6.5 per cent primarily driven by strong domestic demand and government initiatives like Atmanirbhar Bharat and production linked incentive scheme.