New Delhi: Driven by strong GDP growth and positive investor sentiment, India is poised to remain among the world's fastest growing economies until 2030, global brokerage Goldman Sachs has said.
The country’s earnings have started to stabilize over the past few years, with “mid-teen profit growth momentum that might sustain until 2030,” Goldman Sachs said in a note, as the country continues to remain resilient amid global uncertainties.
According to the global brokerage, Nifty’s total earnings growth and market cap have both achieved an 18 per cent compound annual growth rate (CAGR) over the past five years.
“As this evolves, the profit pool is likely to shift towards investment cyclicals, which includes autos, real estate, chemicals along with industrials, which could see the largest rise in profit share. Consumer cyclicals could see the highest absolute growth,” according to Goldman Sachs.
Meanwhile, the Indian economy is projected to grow faster at 7.1 per cent this fiscal (FY25), Moody’s Analytics has said. In its new Asia Pacific outlook, the global credit ratings kept the country’s growth forecast unchanged at 6.5 per cent for 2025 while projecting faster growth of 6.6 per cent in 2026.
S and P Global Ratings has also retained India's growth forecast at 6.8 per cent for the fiscal 2024-25. The global ratings said that In India, GDP growth moderated in the June quarter as high interest rates temper urban demand, in line with our projection of 6.8 for GDP for the full fiscal year 2024-2025. The rating agency also retained India's growth forecast for FY 2025-26 at 6.9 per cent.
According to the report, the Reserve Bank of India (RBI) considers food inflation a hurdle for rate cuts.
"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)," said the report.
Indian economy to grow at 7.1% in FY25: Moody’s AnalyticsMumbai: The Indian economy is projected to grow faster at 7.1 per cent this fiscal (FY25), Moody’s Analytics said, as the country continues to remain resilient amid global uncertainties. In its new Asia Pacific outlook, the global credit ratings kept the country’s growth forecast unchanged at 6.5 per cent for 2025 while projecting faster growth of 6.6 per cent in 2026. Moody’s Analytics projected better inflation outcomes, as it reduced India’s inflation forecast to 4.7 per cent from the 5 percent predicted earlier. The country’s inflation remained below 4 per cent in July and August. The 2025 and 2026 forecast was unchanged at 4.5 per cent and 4.1 per cent, respectively. For the Asia Pacific region, Moody’s raised the 2025 forecast to 4 per cent from 3.9 per cent as projected earlier. Exports have been a key driver for the region, but growth rests on an unstable footing. Key export drivers such as chips are losing steam. Global goods demand has been soft. And China's policy-led ramp-up in exports has sparked protectionism abroad, said Moody’s. |
