Goldman Sachs raises India's 2026 growth forecast to 6.8%
Business
Goldman Sachs is feeling optimistic about India, bumping up its 2026 growth forecast to 6.8%.
Thanks to the U.S.-Iran peace deal and cheaper oil, it has also trimmed its inflation estimate to 4.4% and expects a smaller current account deficit of 1.1% of GDP.
This comes after India surprised with strong early 2026 growth, even with global turbulence.
Remittances and falling prices support India
With crude and urea prices dropping, India's fuel costs are easing up, which helps keep inflation in check and takes some pressure off government spending.
Goldman Sachs also pointed out that more remittances from abroad and falling global commodity prices are giving the economy an extra boost, setting things up for steadier growth through the rest of the year.