Goldman Sachs Raises India's GDP Growth Forecast to 6.9% After US Tariff Cuts

• Goldman Sachs increased India's 2026 real GDP growth forecast by 20 basis points to 6.9% annually.
• The revision follows the US reducing tariffs on Indian imports from 50% to 18%, potentially lowering effective tariffs by 20 percentage points.
• Current Account Deficit (CAD) estimate for 2026 lowered to 0.8% of GDP due to improved trade conditions.
• Rupee pressure eased, but significant strengthening is not expected due to RBI's forex reserve efforts.
• RBI's repo rate expected to remain stable at 5.25% until 2026; textile and gems & jewelry sectors to benefit most from tariff reset.