Goldman Sachs raises India 2026 growth target by 20 bps to 6.9% post trade deals with US

Goldman Sachs expects India's economic growth to be higher than its previous projection in 2026 after the country secured a trade deal with U.S.

It now expects growth at 6.9% year-on-year, up from its previous projection of 6.7%

"...After exclusions, we estimate the effective tariff rate imposed by the US on Indian imports may be around 20pp lower than the 34% earlier," economists led by Santanu Sengupta say in a note

Last week U.S. cut tariffs on Indian goods to 18% from 50% in exchange for India halting purchases of Russian oil and lowering trade barriers

Economists further say pressure on rupee has eased but sees limited room for upmove from current levels as any pick up in portfolio inflows on the conclusion of deal, is likely to be met with a gradual unwind of short forward book