The Economic Times

Israel, Iran War: Goldman Sachs slashes India growth forecast, warns currency strain will force rate hike

Goldman Sachs has lowered its growth forecast for India in 2026 to 5.9 percent. The firm anticipates a 50 basis points increase in policy rates. This adjustment stems from the Indian economy facing significant currency depreciation and the impact of elevated oil prices. Inflation is also expected to rise. The current account deficit may widen.