Skip to content

Slower Growth Will Be Good for India, For Now, Economists Say

  • Government to report July-September GDP data on Wednesday
  • Growth of about 6% to tame prices, narrow deficits: economists

India’s annual economic growth is forecast to slow to about 6% for a few years, according to economists including from Goldman Sachs Group Inc. and Barclays Plc.. And they say that’s not such a bad thing.

Gross domestic product expansion at about 6% is a sweet spot for Asia’s third-largest economy to steer inflation back to the Reserve Bank of India’s target, and also to narrow budget and current account deficits, said Rahul Bajoria of Barclays. Price gains have stayed above RBI’s 2%-6% target since the start of 2022, and the central bank seeks to cool it to 4% by 2024.