India To Grow At 6.7%: Goldman Sachs Raises Forecast Citing Stable Indicators

American banking behemoth Goldman Sachs has raised the growth forecast of the Indian Economy for 2024 from 6.6 per cent to 6.7 per cent. This means an increase of 0.1 per cent or 10 basis points.

The banking giant has sighted robust indicators for the uptick. This comes on the back of expectation of an interest rate cut from the Reserve Bank of India, possibly in the next Monetary Policy Meeting in June 2024. Goldman Sachs also expects the US Fed to cut its ratings.

Positive Ratings For Economy

The inflation rate has also been relatively favourable for the Indian prospects.

The CPI for April dropped from 4.85 per cent in March to 4.83 per cent.

This rating comes just a few days after the central bank's much-discussed dividend transfer to the central government, which saw a surplus of Rs 2.1 lakh crore being given to the government.

In addition to Goldman Sachs, other renowned American rating agencies including Moody's and S&P have also bestowed a fairly positive rating(s) in the recent past. In April Moody's while maintaining a stable outlook for India, gave a t ‘Baa3’ and ‘P-3’ rating for long-term and short-term growth respectively.

Stock Markets Zoom

Meanwhile, in March, S&P had also upped its growth forecast from 6.4 per cent to 7.6 per cent for the year, while pegging the overall growth for FY25 at 6.8 per cent .

This also comes at a time, when equity markets are also booming. In fact, the indices started the new trading week on Monday, May 27 crossing record numbers. The BSE Sensex ended touched the all-time high mark of 76,000 points, before settling in red at 75,390.50, and the Nifty closed down 24.65 points or 0.11 percent at 22,932.45.

In this, the banking stocks ended the day's trade with major gains, Indusind and Axis Bank gained over 1 per cent.