Goldman Sachs forecasts India's GDP growth to slow to 6.3% in 2025 due to fiscal constraints.

Goldman Sachs predicts India's GDP growth will slow to 6.3% in 2025 due to fiscal tightening and slower credit growth. Despite this, the bank sees a strong long-term outlook for India, driven by demographics and stable governance. Goldman Sachs expects headline inflation at 4.2% and food inflation at 4.6% in 2025. The RBI is forecast to delay repo rate cuts to Q1 2025, with a 50 basis points reduction expected by mid-year, while maintaining the current 6.5% repo rate to control inflation.

November 24, 2024
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