Goldman Sachs expects the RBI's monetary easing and deregulation drive to gradually improve credit growth, with asset quality risks receding and financial sector earnings set to rebound by 2026.

Global investment bank Goldman Sachs expects India’s economic growth to gain momentum in 2026, supported by easier financial conditions, domestic regulatory relaxations, and a moderation in external headwinds.

Goldman Sachs Positive On India’s Growth

In its latest report titled “Deregulation Dividend for the Banking System”, the firm said, “We expect 2026 to mark an improving growth backdrop on the external front as we expect tariffs to ultimately settle at lower levels. We expect an additional policy rate cut before year-end, and the recent GST simplification signals that peak fiscal consolidat

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