India to be insulated against global shocks in 2025: Goldman Sachs

Its economists forecast that India’s gross domestic product (GDP) will keep growing strongly in the long term, but with a speed bump next year as government spending and credit growth slow.

“The structural long-term growth story for India remains intact driven by favourable demographics and stable governance,” Santanu Sengupta, chief India economist at the company, said.

Its economists expect India’s economy to grow at an average of 6.5 per cent between 2025 and 2030.

Headline inflation in India is expected to average 4.2 per cent year on year (YoY) in 2025. Core inflation should be around the central bank’s target of 4 per cent YoY in 2025, with some possibility that inflation will decline if US tariffs compel Chinese manufacturers to reallocate their products to regional markets.

Goldman Sachs Research expects India’s central bank to cut rates by 25 basis points in February, and then again 25 basis points in April, an article on the company’s website noted.

Fibre2Fashion News Desk (DS)