New Delhi, Oct. 24 -- India's economy is likely to grow 6.7-6.9% this fiscal year, driven by buoyant domestic demand, steady policy reforms, and a revival in private investment, consultancy firm Deloitte said on Thursday. The firm raised its FY26 forecast from 6.5% estimated earlier, reflecting stronger-than-expected momentum in consumption and investment. "Deloitte India forecasts GDP growth between 6.7% and 6.9%, averaging 6.8% this fiscal year, up by 0.3 percentage points from its previous estimate," Deloitte India said in a statement. Its latest India Economic Outlook report said that moderating inflation and improving consumer sentiment, particularly in rural areas, are expected to sustain spending, while structural measures, such as the proposed goods and services tax (GST) 2.0, will reinforce medium-term growth prospects. "This performance signals not just resilience but a renewed sense of India emerging stronger than most nations. Similar growth rates are expected next year, though the variation may be wider given uncertainties around trade and investment," it added. To be sure, India's real GDP growth outperformed expectations in the June quarter of 2025 (Q1FY26), accelerating to 7.8% year-on-year, driven by strong private consumption and investment amid lower-than-expected inflation. Consumption is expected to have increased during the festive season in the October-December quarter (Q3FY26) on the back of GST rate rationalisation and improving consumer sentiment. "Demand during the festive quarter will likely be fuelled by a notable rise in consumption spending. This is expected to be followed by strong private investment, as businesses respond to uncertainties and prepare to meet elevated demand," said Rumki Majumdar, economist, Deloitte India. There is also anticipation that India will strike a deal with the US and the European Union (EU) by the end of the year, which is expected to elevate overall investment sentiments. "Strong growth in the first and third quarters is likely to drive overall annual growth," she added. The consultancy firm also highlighted India's track record of turning crises into reform opportunities and identified micro, small, and medium enterprises (MSMEs) as the next growth frontier....