Goldman Sachs cuts India's 2026 current account deficit to 1.3%
Business
Goldman Sachs just updated its outlook for India's current account deficit (CAD) in 2026, lowering it to 1.3% of GDP instead of the earlier 2%.
The bank credits this upgrade to stronger remittances, solid services exports, and less spending on oil imports, so, basically, India is earning more from abroad and saving a bit on energy.
Goldman forecasts India 0.6% balance-of-payments surplus
Goldman also expects India to see a balance of payments surplus of 0.6% of GDP by 2026.
The Reserve Bank of India's moves (like incentives for foreign currency deposits and tax perks for overseas investors) could bring in an extra $60 billion in capital inflows.
Even with global uncertainty and higher oil prices, Goldman says India is better prepared now thanks to lower oil intensity and smarter energy use.