Goldman Sachs cuts India's GDP for 2023 to 5.9%

Goldman Sachs has revised India’s real GDP growth projection for 2023 downwards to 5.9 per cent from 6.9 per cent. Growth momentum is likely to slowdown in the first half of the year owing to higher borrowing costs and fading benefits from the Covid pandemic reopening. In the second half, growth is likely to re-accelerate as global growth recovers, drag from net exports diminishes and investment cycle picks up. Goldman further stated that India’s retail inflation rate is expected to come down to 6.1 per cent in 2023, while it is expected to be 6.8 per cent in 2022.