India remains an attractive investment destination despite the current global uncertainty due to the US’s tariff and tax policies, according to a new report by Deloitte.
“The global trade landscape is undergoing significant transformation, marked by a rise in protectionist policies. With the current uncertainty around reciprocal tariffs and shifting trade dynamics, it remains to be seen how the situation will stabilise. Despite these headwinds, India will remain resilient,” said the report, titled India at the Centre of Global Investments.
India remains the fastest growing major economy in the world with strong domestic demand that accounts for nearly 80% of its GDP, the report highlighted, noting that it is set to become the world’s third largest economy by 2027 with an expanding consumer base, especially of middle-income households.
“By 2030, an estimated 140 million households are projected to join the middle class, and 20 million are expected to enter the high-income segment. This shift will drive spending on essentials to increase by 2–2.5 times and spending on services by 3–4 times, with total consumer expenditure anticipated to rise from US$1.9 trillion to US$5.2 trillion,” it said.
The report also noted that India has made significant investments in infrastructure and is focusing on expanding and modernising its physical assets.
“Given the strength of its domestic economy, India is well-equipped to withstand external trade disruptions. The country has steadily built a robust foundation that positions it for continued growth—regardless of volatility,” it noted.
Gokul Chaudhri, President, Tax, Deloitte, South Asia noted that despite the global uncertainty, the India story remains as relevant, vibrant and bold as before. He further noted that there are several megatrends shaping the Indian economy such as the demographic dividend and the focus on digital and technology related developments and innovation.
“While there will be some impact on account of global headwinds on India, we hope that it will only be in the short term,” he said.
When asked whether companies are considering India as an investment destination due to the ongoing tariff war between the US and China, Chaudhri said that most firms are currently on a wait and watch mode but will take a decision at some point of time. “In every scenario planning that is happening, in every pathway of decision making, India is appearing on the map. But it is not India that is a question mark, it is more the timing of the decisions that they have to take,” he said.
The report also highlighted that the forthcoming decade will stand testament to India’s relentless pursuit of the technological forefront, displayed through the rapidly increasing AI capabilities at urban centres and at the grassroots level. “This will instil a new wave of innovation – that is both inclusive and transformative. India has become a nurturing habitat for start-ups, where dreams transform into substantial realities,” it said.
Further, GCCs in India demonstrate strong reliability and expertise, highlighting India’s role as a global hub for quality and cost-effective services, it noted, adding that with supportive policies and a skilled workforce, India is well-prepared for future opportunities.
