New Delhi, Feb. 3 -- Goldman Sachs has raised its 2026 real GDP growth forecast for India by 20 basis points to 6.9 percent year-on-year after the United States (US) lowered its "reciprocal" tariffs on Indian goods imports to 18 percent, down from 25 percent.
Economists at Goldman Sachs estimate that the lower tariffs could provide an incremental boost of around 0.2 percentage points to India's real GDP growth on an annualised basis, given India's goods export exposure of roughly 4 percent of GDP to US final demand.
As a result, the firm has raised its 2026 real GDP growth forecast for India by 20 basis points to 6.9 percent year-on-year.
India's goods trade surplus with the US has doubled over the past decade, rising from about USD 20 b...