New Delhi: Multinational investment bank Goldman Sachs forecasts India’s GDP growth to “decelerate” to 6.3 per cent in 2025, over continued fiscal consolidation and slower credit growth.

However, Goldman Sachs said India’s strong long-term structural growth story remains intact, driven by favorable demographics and stable governance. It is also relatively more insulated against global shocks.In 2025, it believes India will likely be a relatively insulated economy from global shocks emanating out of a potential trade war between the US and China.

Goldman Sachs forecast India’s headline inflation at 4.2 per cent (average) in 2025 with food inflation at 4.6 per cent.”Food supply shocks due to weather-related disruptions remain the key risk to this view,” said Goldman Sachs, in a latest report titled ‘India 2025 outlook: Standing firm in an uncertain world’.

Elevated and volatile food inflation, mainly driven by vegetable prices due to weather shocks, has kept the RBI from easing monetary policy.India’s retail inflation was at 6.21 per cent in October, breaching the Reserve Bank of India’s 6 per cent upper tolerance level.Goldman Sachs pushed back its forecast for the start of repo rate easing by the RBI to first quarter of 2025 but continue to expect only a 50 basis points cumulative cuts by mid-year.

The RBI has kept the repo rate elevated at 6.5 per cent to keep inflation contained. The repo rate is the rate of interest at which the RBI lends to other banks.”While the cyclical growth slowdown calls for easier monetary conditions in our view, the “stronger dollar” scenario will mean the RBI will likely proceed cautiously,” said Goldman Sachs.

On the Rupee exchange rate front, the cushion from external shocks should allow the Rupee to outperform its regional partners. Near term, in the face of a stronger dollar, Goldman Sachs expects the Rupee versus Dollar rate to depreciate modestly to 85.5 – 86 over the next 3-6 months, but to remain stable thereafter.At present, Rupee is pegged around 84.40 per US dollar. 

Bengaluru: At least 200 women entrepreneurs in India are poised to raise an estimated Rs 850 crore ($100 million) from investors, helping to expand businesses and create new jobs, Goldman Sachs announced on Friday.

According to Union Minister for Commerce and Industry Piyush Goyal, the ‘Goldman Sachs 10,000 Women’ initiative highlights the untapped potential in women.

“I am confident that they will continue to break barriers and empower others. They are committed to investing in and supporting the progress of women. Currently, 3,500 women from this initiative have created job opportunities and are driving economic activities,” Minister Goyal said an the company’s event here.

“The programme also demonstrates how these women contribute significantly to the government’s journey of Amrit Kaal as we work towards achieving India’s Viksit Bharat goal by 2047,” the minister added.

The ‘Goldman Sachs 10,000 Women Finance for Growth’ initiative was developed and launched in 2023 in partnership with NSRCEL, the incubation arm of IIM Bangalore.

More than 400 graduates of ‘Goldman Sachs 10,000 Women’ participated in this initiative designed to equip women entrepreneurs with an enhanced understanding of business finance, provide mentoring and networking opportunities, and connecting them with investors.

“Empowering women entrepreneurs with the right skills, meaningful mentorship and strategic networks to access the right kind of capital at the right time is not just transformative for their business – it is a powerful catalyst for sustainable job creation, wealth generation and economic growth,” said Asahi Pompey, global head of Goldman Sachs’ Office of Corporate Engagement.

According to Sonjoy Chatterjee, Chairman and CEO of Goldman Sachs in India, the initiative equips women entrepreneurs with a deeper understanding of how they can access external finance for growth.

“It is a testament to our commitment to support women-led businesses by bridging the credit gap through our network of investors in India,” Chatterjee added.