India's GDP Growth to Slow to 6.8% by FY27, Rate Cuts Limited: Goldman Sachs

• Goldman Sachs forecasts India's real GDP growth to moderate to 6.8% in FY27 from 7.3% in FY26.
• Government data estimates FY26 growth at 7.4%, higher than Goldman Sachs' initial FY26 projection.
• Inflation is expected to firm up to 3.9% in 2026, near RBI's 4% target, limiting scope for rate cuts.
• Subdued private capital expenditure and US tariffs impacted capex in 2025, hindering growth acceleration.
• Rupee's depreciation is expected to ease, and current account deficit to be 1% in 2026 due to low oil prices.

Why It Matters: India's economic growth is projected to slow, with limited room for RBI rate cuts due to inflation.