Goldman Sachs upgrades India's 2026 GDP growth to 6.9% after US cuts tariffs
- IBEF
- February 4, 2026
Goldman Sachs has slightly increased its forecast for the real GDP growth in India in calendar year 2026 to 6.9%, thanks to a new trade development that has reduced uncertainty for exporters and investors. Goldman Sachs identifies the new India-US trade agreement as the major reason for the revision, as it reduces the trade barriers for Indian exports by lowering the tariffs on Indian goods to 18%. Now that the negative impact of higher tariffs on trade sentiment has been alleviated, there will be a positive impact on export competitiveness, particularly in the labour-intensive and consumer sectors, and a solid foundation for private investment intentions. The market has responded positively to the revision, with the rupee appreciating and Indian stocks rising, indicating increasing confidence among global and domestic investors.
Goldman Sachs further explains that once trade tensions are alleviated and tariffs are reduced, there could be further upside to growth in the latter part of 2026 if private capex accelerates strongly in the second half of the year. The revised forecast is not just a result of one export boost but a sign of a larger macroeconomic environment that is fueled by consumption and a stable domestic demand. Economists interpret this as a sign that India is resilient to global challenges and that growth will continue despite global headwinds.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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