The world’s fastest-growing major economy is set to accelerate in the current fiscal year, according to Goldman Sachs.
India’s economy is set to grow by 7.9 percent on-year between April 2016 and March 2017, accelerating from 7.6 percent in the previous year, the investment bank said in a note on Tuesday.
That growth figure, if achieved, would put India well above China, which is expected to expand at a more modest pace this year, with the Chinese government aiming for growth of 6.5 to 7 percent.
Goldman highlighted the following factors that are expected to support India’s growth in the coming months.
- A better monsoon
- Wage hikes for civil servants
- Favorable policy mix
- Progress on reforms