India's economy is on track for $4 trillion by 2026, says Goldman Sachs

Business Jan 07, 2026

Big news: India could hit a $4 trillion economy by the end of FY26, according to Goldman Sachs.
The country's growth rate grew by 7.3% in FY26—even as global conditions remained uneven.

What's powering this growth?

Manufacturing and services are leading the charge, with manufacturing rising to 7% (up from 4.5% last year). Services like finance, real estate, and professional work grew nearly 10%.
Trade, hotels, transport, and communication also expanded solidly.
But it's not all smooth sailing—agriculture has slowed down to 3.1%, and mining is shrinking.
Plus, with slower nominal GDP growth (now at 8%), managing government finances might get trickier.
Goldman Sachs also thinks the rupee could reach ₹89.5 per dollar by March.