Goldman Sachs projects India growth at 6.7% in 2026, beating consensus

India is expected to outperform consensus growth estimates over the next two years, with real GDP growth projected at 6.7 per cent in 2026 and 6.8 per cent in 2027, according to Goldman Sachs’ Global Economics Analyst Report Macro Outlook 2026, cited by ANI.

The report stated that global economic growth is likely to remain resilient in 2026, with worldwide expansion projected at 2.8 per cent, above the consensus estimate of 2.5 per cent. Goldman Sachs informed that the outlook is supported by stable inflation and easing monetary conditions across several economies.

It added that the United States is expected to substantially outperform consensus expectations, with growth of 2.6 per cent compared with a forecast of 2.0 per cent, driven by reduced tariff drag, tax cuts and easier financial conditions.

According to the report, emerging markets, including India, are set to outperform developed economies on the back of stronger domestic demand and favourable structural trends. Goldman Sachs stated that India will remain among the world’s fastest-growing large economies, exceeding consensus forecasts over the medium term.

The firm projected China’s growth at 4.8 per cent in 2026 and 4.7 per cent in 2027. It noted that India’s growth trajectory continues to be supported by robust domestic consumption, sustained public infrastructure spending and relatively limited exposure to global trade disruptions compared with export-dependent economies.

The report highlighted that while advanced economies such as the United States and the euro area are expected to post moderate growth, emerging economies like India will remain key drivers of global expansion. It added that India’s strong performance is reflected in IMF-weighted global growth calculations, where faster-growing economies such as India and China carry greater weight.

On inflation, Goldman Sachs said price pressures are expected to ease across most economies by the end of 2026, aided by lower commodity prices, productivity improvements and easing supply-side constraints. This environment is likely to allow central banks in several emerging markets to maintain or adopt accommodative monetary policies, which could further support growth prospects for countries such as India.

The report, however, flagged global labour market weakness as a key risk, stating that productivity gains are not translating proportionately into job creation. While this trend is more evident in developed markets, it warned that a broader slowdown in global employment growth could pose indirect challenges for emerging economies over time.

Overall, Goldman Sachs maintained a constructive outlook for emerging markets in 2026, positioning India as a relative bright spot amid steady global growth, moderating inflation and supportive financial conditions, the report stated.