Current Affairs - Economy - Discussion

Goldman Sachs has reduced its projection for India’s real GDP growth in 2026 to 6.4%, marking a 0.2 percentage point decline from the previous year’s estimate. This downward revision is attributed to escalating US–India trade tensions, specifically the 25% tariff imposed by the United States, as well as broader policy uncertainty affecting investor confidence and business planning. While the firm acknowledges that some tariffs might be renegotiated over time, the unpredictability surrounding trade policies remains a significant risk factor. This cautious stance reflects concerns over sustaining growth momentum amid geopolitical and macroeconomic challenges.