Goldman Sachs raises India's GDP growth forecast to 6.9% in 2026
Goldman Sachs now expects India's economy to grow 6.9% in 2026, thanks to a surprise move from US President Donald Trump: he cut tariffs on Indian goods from 25% to 18%.
This change is set to give India's GDP a small but meaningful boost and brings its trade policies closer to other Asian countries.
Lower tariffs will encourage investments and spending on big projects
With lower tariffs, Indian exports get a leg up in the US, which should help shrink India's current account deficit and bring more dollars into the country.
Goldman Sachs says this will also make things less uncertain for businesses, encouraging fresh investments and more spending on big projects by late 2026.
India is a beneficiary from this US policy shift
India is shaping up as a beneficiary from this US policy shift.
The improved relationship with the US could strengthen the rupee and reduce trade-policy uncertainty, potentially supporting private investment and trade activity.
These developments could have broader economic implications.