FMCG and renewables sectors to thrive in India

Rumki Majumdar, an economist at Deloitte, shared insights about India's economy and its future growth potential. She notes that while the market currently faces volatility due to global uncertainties, the long-term outlook remains positive. Government reforms, demographic trends, and growth in key sectors will support this. India's economy grew by 6.2 percent in the third quarter, slightly below expectations in an election year. Majumdar believes this slowdown, influenced by global events and uncertain trade conditions, was anticipated. Despite the challenges, indicators like corporate profits and FMCG (fast-moving consumer goods) growth point to a recovering economy. The financial markets have seen a decrease of about 16 percent from their previous peaks, but Majumdar remains hopeful about future investment in India. She states that once global trade uncertainties are resolved, investors will be attracted to India's strong domestic demand and manufacturing capabilities. In comparison to other economies, India continues to grow quickly, with recent drops in inflation indicating stability. While there is progress in reducing fiscal and current account deficits, Majumdar emphasizes the need for continued improvements. On the job creation front, she asserts that the private sector must play a key role. The government can help by focusing on upskilling and ensuring technology benefits reach all workers. Looking ahead, Majumdar identifies several sectors likely to excel. The FMCG sector will benefit from increased consumption in the short term. The auto industry, especially the entry and mid-segment markets, is expected to thrive. In the long term, renewables, defence, and semiconductors will attract significant investments, aided by India's push for self-reliance. The services sector is also poised for growth, driven by rising digitization and manufacturing opportunities.