Goldman Sachs (GS) cuts India’s 2026 GDP growth forecast to 5.9%

Exam-focused facts from the 25 March 2026 current affairs briefing.

Key facts

Goldman Sachs lowered India’s 2026 growth forecast to 5.9% from its pre-Gulf conflict estimate of 7%.
The revision follows the Gulf conflict and higher Brent crude price projections of $105 per barrel in March and $115 in April.
India’s inflation is forecast to rise to 4.6% in 2026, prompting Goldman Sachs to expect a 50-basis point hike in the Reserve Bank of India (RBI) policy rate.
Goldman Sachs projects India’s current account deficit to widen to 2% of GDP in 2026 from 1.3% in October-December 2025.
Among major economies, India faces the largest growth forecast cut, compared with China (4.7% from 4.8%), South Korea (1.9% from 2%), and Hong Kong (1.8% from 2.6%).