India’s GDP Expected to Surpass 6% Growth, Says Goldman Sachs

According to Santanu Singh Gupta, the Indian economist at Goldman Sachs Group, India’s economic growth may surpass 6% during the rest of the current decade, encouraging increased investment flow into the economy compared to China.

Singh Gupta explained that long-term economic growth is likely to rise to around 6.5% or slightly higher. He anticipates growth of 6.3% for the next fiscal year starting in April, which falls below the expectations of the Indian Reserve Bank of 7%.

The population composition of India, strong government-led spending, and robust domestic demand make the country a “preferred destination for investments now and in the future,” as reported by Bloomberg Television.

The potential growth is an estimate of the pace at which the economy can grow without causing an increase in inflation rates. The Indian central bank governor estimated the potential growth rate for the country at roughly 7% last month.

Goldman Sachs also expects that the Indian private sector will contribute to accelerating investments after the national elections.