Goldman Sachs raises India's 2026 growth forecast to 6.9% after U.S. tariff reduction from 25% to 18%.

Goldman Sachs raised its 2026 India GDP growth forecast to 6.9% following a U.S.-India trade deal that reduced American reciprocal tariffs on Indian goods from 25% to 18%. The bank estimates the change will boost GDP by about 0.2 percentage points annually, driven by improved export competitiveness and reduced trade-policy uncertainty. The agreement is expected to support a recovery in private capital expenditure, narrow India’s current account deficit to 0.8% of GDP, and help stabilize the rupee through improved capital inflows. The new tariff rate aligns India with other major Asian economies.