India's GDP growth is forecast at 6.6% in the current fiscal year, according to Deloitte India on Friday, bolstered by consumption expenditure, a rebound in exports and capital flows.

According to Deloitte's India Economic Outlook report, the rapid expansion of the middle-income class has resulted in increased purchasing power and has generated demand for high-end luxury goods and services.

Deloitte expects that by 2030/31, one in every two households will belong to the middle-to-high-income segments, compared to one in four currently. They believe this trend will likely intensify, leading to increased overall private consumer expenditure growth.

Deloitte has adjusted its economic growth forecast for India's last fiscal year to a range of 7.6 to 7.8%.

Back in January, the firm predicted growth for the 2023-24 fiscal year to be between 6.9 and 7.2%.

Additionally, Deloitte stated in its quarterly update to its economic outlook that the country's GDP growth is expected to reach approximately 6.6% in FY 2024-25 and 6.75% in the following year. 

This forecast considers how markets are adapting to factor in geopolitical uncertainties in their investment and consumption decisions, Business Standard reports.

"The global economy is expected to witness a synchronous rebound in 2025 as major election uncertainties get sorted out and the central banks of the West may announce a couple of rate cuts later in 2024. India will likely see improved capital flows and a rebound in exports" said Deloitte India Economist, Rumki Majumdar.

The economy has benefited from strong growth numbers over the past two years, allowing it to catch up with pre-COVID trends. Investment, supported by robust government spending on infrastructure, has played a crucial role in maintaining a steady recovery momentum, she went on to add.

Deloitte's GDP growth estimate for FY25 aligns with projections from the World Bank, but it is lower than those made by the Reserve Bank of India (RBI) and other agencies. 

The RBI has projected the Indian economy's growth at 7% for the current fiscal year.