Goldman Sachs Slashes India's 2026 Growth Forecast to 5.9%, Warns of Rate Hike

• Goldman Sachs has cut India's 2026 growth estimate to 5.9% from 7% due to currency depreciation and oil price concerns.
• The bank forecasts a 50 basis points hike in policy rates to counter pressures from a depreciating Indian currency.
• The revised forecast follows changes in assumptions regarding oil prices and supply disruptions, with Brent crude expected to average $105 in March and $115 in April.
• Analysts now project India's inflation to rise to 4.6% in 2026, up from an earlier expectation of 3.9%.
• India's current account deficit is expected to widen to 2% of GDP in 2026, compared to 1.3% in Q4 2025.