Rising Inflation : India's growth rate is estimated to be below 6%

In the midst of rising inflation, decreasing employment opportunities and economic slowdown, another bad news has come for the government. India's growth projections, which were more than 7.5 per cent at the beginning of the year, are now crumbling. Big financial institutions around the world are reducing India's economic development estimates in view of the current situation. The latest entry in this is from America's brokerage company Goldman Sachs. Goldman Sachs has reduced India's growth forecast to less than 6 percent in the current financial year.

American firm Goldman Sachs has suddenly made a big cut in India's growth forecast. Looking at the economic environment in the next two quarters, the institution has estimated India's economic growth rate to be 5.9 percent in 2023. Earlier in the beginning of the year, Goldman Sachs had projected a growth rate of 6.9 percent. Thus, in the last 6 months itself, Goldman Sachs' estimate has come down by a full 1 percent. Whereas for the year 2022, this estimate is 6.9 percent.

Goldman Sachs may have reduced India's growth forecast, but has predicted a huge boom in the stock market. The organization also said that in about 1 year i.e. by December 2023, the Nifty of the National Stock Exchange can reach the level of 20,500 points. With this, investors can get returns of up to 12 percent. The brokerage company, however, has not given any target for BSE Sensex. According to the brokerage, the economic growth can be divided into two parts. Economic growth may remain slow in the first half of the year 2023. At the same time, in the second half, economic growth is likely to accelerate again due to increase in investment, improvement in global markets.