Our Bureau
Mumbai
Top global bank Goldman Sachs has lowered its growth prediction for India’s economy in 2026. It now sees GDP growth at 6.5 percent, down from 7 percent earlier.
This change comes as experts watch rising risks from world trade fights and high oil prices. India’s financial year 2026 runs from April 2026 to March 2027. Goldman Sachs points to slower exports and sticky inflation as key issues. It expects prices to rise to 4.2 percent from 3.9 percent now.
In contrast, rating firm Fitch Ratings holds a brighter view. It keeps FY26 growth at 7.5 percent, driven by strong home demand like spending and jobs. But Fitch warns of a dip to 6.7 percent in FY27 and 6.5 percent in FY28. It sees inflation hitting 4.5 percent by year-end due to costly crude oil.
India’s economy stays strong despite hurdles. Official data shows 7.8 percent growth in the October-December quarter of FY26, beating hopes of 7.6 percent. The government raised full FY26 estimate to 7.6 percent under a new calculation method with base year 2022-23. Q2 growth was 8.2 percent even with high US tariffs on imports.
Chief Economic Advisor V Anantha Nageswaran said India will hit $4 trillion GDP by 2026-27. Lower inflation helped keep real growth close to nominal growth at 8.9 percent in Q3.
