Goldman Sachs Predicts India's Consumption Rebound by FY27

• Goldman Sachs' Chief India Economist, Santanu Sengupta, anticipates a clear consumption recovery in India by the second half of FY27.
• RBI's 125 basis points interest rate cuts and 3% GDP liquidity infusion are expected to show distinct impact over the next year.
• Lower-income households are projected to benefit from accessible credit, GST reductions, and increased fiscal transfers, especially during election periods.
• Urban credit growth is already rebounding, and household deleveraging over the next six months will support future borrowing and spending.
• Goldman Sachs expects India to achieve high 6% growth rates in FY27, despite global uncertainties, supported by policy and improved capital flows.

Why It Matters: India's consumption is set for a clear recovery by H2 FY27, driven by policy support and household deleveraging.