MC-Deloitte CEO survey: 42% CEOs optimistic about economic revival in next fiscal, say slowdown a blip

Finance Minister Nirmala Sitharaman reassured Parliament on December 17 that the downturn was a "temporary blip."

The economic slowdown in India is seen as a blip by 42 percent of chief executive officers, with many expecting a recovery in the next financial year, a Moneycontrol-Deloitte survey has found. The cautious optimism reflects confidence in India’s economic strength, even as it grapples with short-term hurdles.

The Moneycontrol-Deloitte survey of 45 CEOs across financial services, consumer goods, technology, and energy sectors was conducted between January10 and January 22.

As many as 42.2 percent of the respondents are confident that the economy will rebound in the next fiscal, which starts on April 1. Another 35.6 percent anticipate an uptick by the end of the 2025-26. However, 17.8 percent believe the slowdown is here to stay, while a few remain undecided.

The survey highlights a mixed sentiment within India’s business landscape, as leaders navigate challenging macroeconomic conditions.

India’s Gross Domestic Product (GDP) growth is projected to decline to 6.4 percent in FY25, according to the government’s first advance estimates, released on January 7, underscoring a slowdown attributed to weakened manufacturing and investment growth.

While the economy showed robust performance in the first quarter of FY25, achieving a growth rate of 6.7 percent, the momentum declined sharply in the second quarter to 5.4 percent — the lowest in seven quarters. This dip has raised concerns, though finance minister Nirmala Sitharaman reassured Parliament on December 17 that the downturn was a "temporary blip".

"We believe that an improvement will be seen in the coming quarters," Sitharaman said, emphasising that the challenges in Q2 were not unique to India but part of a global economic slowdown. She pointed to India’s strong performance in the past three years, with an average GDP growth rate of 8.3 percent, positioning the country as the fastest-growing major economy.

The slowdown in the second quarter was led by a contraction in mining, which declined by 0.1 percent, its first drop in two years.

Manufacturing, a critical driver of growth, also faltered, growing at just 2.2 percent compared to 7 percent in the previous quarter. Sitharaman said the decline in manufacturing was not widespread but limited to specific sectors.

The Reserve Bank of India (RBI), in its Financial Stability Report released on December 30, expressed optimism about the economy. It projected a recovery in the third and fourth quarters of FY25, driven by robust domestic consumption and investment, strong services exports and accommodative financial conditions.

The central bank’s assessment aligns with the government’s view that the slowdown is transitory and sustained policy efforts will support growth revival.