India well-poised for rapid growth despite near-term risks from global conflicts: ITC
It was also stated that the recently negotiated bilateral trade agreements with the US, UK, European Union, New Zealand and Oman “bode well for India’s overall growth outlook”.
It said the country’s growth outlook continues to be “supported by positive agricultural prospects, stable services activities, continued pressure from the Government on capital expenditure and supportive monetary and financial conditions.”
ITC said rural consumption is likely to remain strong, helped by resilient rural wages and declining unemployment levels, while urban demand is expected to improve following a recovery in consumer credit as well as measures aimed at boosting disposable incomes and consumption.
“Healthy corporate and bank balance sheets, low interest rates and capacity utilization of approximately 75 percent provide a supportive basis for a revival of private sector capital spending.”
However, the company warned that ongoing conflict in West Asia has raised concerns about India’s energy security and imported inflation.
“A prolonged disruption, combined with emerging El Niño conditions that could weaken monsoons and intensify heat waves, poses risks to growth, inflation and the current account,” he said. ITC added that these developments may also have second-order impacts on consumer sentiment and demand conditions and will remain key factors to watch in the near term.
“Despite short-term challenges, the Indian economy is poised for rapid growth in the medium term, supported by structural drivers such as favorable demographic profile, rising prosperity, rapid urbanization, accelerated digital adoption, and improved infrastructure and connectivity.” he said.
ITC also highlighted the government’s focus on developing next-generation physical and digital public infrastructure, increasing competitiveness in manufacturing, advancing taxation and financial sector reforms, and improving the ease of doing business as critical elements of sustainable growth and stronger global competitiveness.
“The Indian economy is poised for rapid growth in the medium term,” the company said.
Moreover, the government’s continued focus on next-generation infrastructure, manufacturing competitiveness, tax and financial sector reforms, and ease of doing business will help sustain the growth momentum and enhance India’s competitiveness in global markets.
“At the same time, agriculture-related programs and digital initiatives are expected to strengthen rural prosperity and resilience, thus promoting a broader productive consumption-investment-employment cycle,” he said.
The company also emphasized that policy measures aimed at supporting sustainable livelihoods, rationalizing taxation and promoting inclusive growth will be critical to sustain and accelerate India’s growth trajectory.
“Structural support for these sectors will provide significant multiplier effects for job creation and strengthening local value chains,” he said.
