Goldman Sachs Cuts India Growth Forecast
Analysis based on 6 articles · First reported Mar 24, 2026 · Last updated Mar 24, 2026
The revised economic forecast by Goldman Sachs for India, including slower growth, higher inflation, and a depreciating India — Indian rupee, suggests a challenging outlook for the Indian economy. This could lead to a policy rate hike by the State Bank of India, impacting bond yields and investor sentiment towards Indian assets.
Goldman Sachs has significantly cut its economic growth forecast for India for 2026 to 5.9% from an initial 7%, citing elevated Brent Crude prices and the disruption of flows through the Strait of Hormuz. The bank also anticipates a 50 basis point hike in policy rates by the State Bank of India to combat rising inflation, now projected at 4.6%, and a depreciating India — Indian rupee, which has fallen 4% against the United States this year. These factors are expected to widen India's current account deficit to 2% of GDP.
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