Goldman Sachs Reduces India's Growth Forecast for 2025-26

On April 7, international financial agency Goldman Sachs lowered India's growth forecast for the fiscal year 2025-26 to 6.1%, citing the impact of tariffs imposed by US President Donald Trump. The new tariff measures are expected to disrupt global trade and affect India's economic growth trajectory.

However, some Indian government officials believe that despite the disruption caused by the new US tariffs, India can still achieve a growth rate of 6.3% to 6.8% for the current fiscal year if oil prices remain below $70 per barrel. This suggests that India may be able to weather the storm caused by the tariffs, depending on other economic factors such as oil prices.

Impact of Tariffs on India's Growth

Goldman Sachs' decision to revise India's growth forecast reflects the challenges posed by the international trade environment. The tariffs imposed by the US have been a significant factor, impacting India's trade dynamics. However, the government's optimism about oil prices offers a potential buffer for the economy in the face of these external disruptions.