Goldman Sachs forecasts India's real GDP growth at 9.1% in 2022

Goldman Sachs has projected India’s real GDP growth for 2022 at 9.1 per cent as compared to eight per cent for 2021. Growth will be mainly driven by a pick-up in consumption as the economy fully re-opens driven by a notable improvement in the virus situation and adequate progress on vaccination. However, the agency cautioned that growth may result in a rise in core inflation as manufacturers pass on input cost increases to consumers as demand recovers with full economic re-opening. As per its estimates, the headline consumer price inflation (CPI) may rise to 5.8 per cent in 2022 from 5.2 per cent in 2021. Goldman Sachs also expects government capital spending to continue, private corporate capex to recover and housing investment to revive.