India's growth to slow down in 2023, Goldman Sachs

Tags: Economy/Finance

The American Investment Banker Goldman Sachs expects India's economic growth to slow to 5.9% in 2023, from an estimated 6.9% growth in 2022 as the boost from the post-COVID reopening fades and monetary tightening weighs on domestic demand.

The Indian economy was one of the fastest growing major economy in world in the first 7 months of this year due to the pent up demand in the economy due to covid led restrictions. However its effect are now fading and government in order to control inflation are following tight monetary policy by raising interest rates. This rising interest rates will reduce demand in the economy leading to a slower economic growth in the country. 

 According to the Santanu Sengupta, India economist at Goldman Sachs, "We expect growth to be a tale of two halves in 2023, with a slowdown in the first half and in the  second half, we expect growth to re-accelerate as global growth recovers, and the investment cycle picks up,"

The Reserve Bank of India (RBI) expects the Indian economy to grow by 7% in 2022-23.