India Inc expresses confidence in achieving a USD 5 trillion economy with support from the central government in infrastructure investments, additional reforms, and enhanced technology adoption, according to a CXO survey by Deloitte Touche Tohmatsu India LLP.
The survey indicates that about 50 per cent of India Inc is optimistic about the country posting above 6.5 per cent growth in FY25. Industries such as automotive, consumers and retail, technology, media, telecommunication, and energy, resources, and industrials anticipate high growth.
Government initiatives, increased trade collaborations, lower logistics costs, policies to boost industrial production, changing consumer preferences, and strong demand in tier-2 and tier-3 cities contribute to this positive outlook. The survey suggests that India is poised to strengthen its position as a global hub for innovation and research, with government support for initiatives emphasizing the pivotal role of research and development.
"Government initiatives, increased trade collaborations, lowering logistics costs, and policies to increase industrial production (such as intelligent automation in manufacturing and increased investment in sustainable technologies) will further this momentum. Changing consumer preferences and strong demand in tier-2 and tier-3 cities are other factors aiding this outlook," it said.
Growth in semiconductor industry
Leaders in the survey anticipate significant growth in the semiconductor industry and expect a comprehensive, long-term policy framework from the government to attract investments. They emphasise the importance of R&D support for local companies and an effective intellectual property rights framework to foster industry growth.
Artificial intelligence (AI) plays a crucial role, with 99 per cent of businesses expecting AI to evolve. About 70 per cent of consumer and retail businesses urge 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 and continuous efforts in skill development initiatives.
To foster India's growth, ensure sustained business expansion, and attract foreign investments, leaders emphasise the continuity of tax certainty. The survey also highlights the importance of ESG (environmental, social, and governance) initiatives, with 100 per cent of respondents emphasising the importance of renewable energy. About 90 per cent of businesses want technological innovation in government processes and operations. Global headwinds and continued cost escalation concerns are also noted, emphasising the importance of targeted skill development to position India as an attractive, forward-thinking economy poised for sustained growth.
(With PTI inputs)
