India is expected to maintain its position as one of the world’s fastest growing economies until 2030, according to global broking Goldman Sachs, thanks to its robust GDP growth and optimistic investor confidence.
Over the past several years, the nation’s earnings have stabilised, with “mid-teen profit growth momentum that might sustain until 2030,” according to a note from Goldman Sachs. This indicates that the nation is resilient in the face of global concerns.
The worldwide broking claims that during the previous five years, Nifty’s market capitalisation and overall earnings growth have both attained an 18% compound annual growth rate (CAGR).
“When this develops, the profit pool is probably going to go towards investment cyclicals, which include industrials, cars, real estate, and chemicals, and which may have the biggest increase in profit share. The greatest absolute growth may be seen in consumer cyclicals, said Goldman Sachs.
According to Moody’s Analytics, the Indian economy will expand 7.1% quicker in this fiscal year (FY25).
The country’s growth estimate was maintained by global credit ratings in its updated Asia Pacific outlook at 6.5% for 2025, with a stronger 6.6% growth predicted for 2026.
Additionally, S&P Global Ratings has kept India’s growth prediction for the fiscal year 2024–2025 at 6.8%. According to worldwide ratings, India’s GDP growth slowed down in the June quarter as high interest rates restrained the country’s desire for cities. This is consistent with our forecast of 6.8 percent GDP for the country’s entire fiscal year 2024–2025. Additionally, the rating agency kept India’s 6.9% growth prediction for FY 2025–2026.
The Reserve Bank of India (RBI) views food inflation as a barrier to rate reductions, per the report.
“Our outlook remains unchanged: we expect the RBI to begin cutting rates in October at the earliest and have pencilled in two rate cuts this fiscal year (year ending March 2025),” according to the study.
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