Goldman Sachs upgrades India's growth outlook after US-Iran peace deal

Goldman Sachs has raised its real GDP growth forecast for India to 6.8% for calendar year 2026, up 30 basis points from its earlier estimate. This upgrade is attributed to lower oil prices, easing supply disruptions, and resilient domestic activity following the US-Iran peace deal. The brokerage firm expects these factors to contribute to stronger growth in the country. The US-Iran peace deal has led to a more stable economic environment, which is likely to benefit India's economy. In addition to the 2026 forecast, Goldman Sachs has also lifted its FY27 GDP growth estimate to 6.5% from 6.1%. This revised estimate is based on expectations of stronger growth, lower inflation, and improved fiscal and external balances. The firm's upgraded growth outlook for India suggests a positive trend for the country's economy, driven by domestic demand and favorable external factors. Overall, the revised forecasts indicate a promising outlook for India's economic growth in the coming years. The combination of lower oil prices, easing supply disruptions, and resilient domestic demand is expected to support India's economic growth, leading to an upgrade in the country's growth outlook.