Goldman Sachs CEO backs India’s growth story. Here’s what he said

By India Today Business Desk: Goldman Sachs CEO David Solomon has expressed his support for India’s growth story, highlighting the country’s high growth trajectory.

According to Solomon, India is predicted to achieve a growth rate of 6-7 per cent over the next three years.

In an interview with the Economic Times, he mentioned that global CEOs are recognising India as a significant growth opportunity, despite acknowledging the challenges associated with investing in the country.

Also Read | S&P reaffirms India as one of world’s fastest-growing economies

Views on US and global economy

Solomon also commented on the resilience of the global economy, particularly the United States, which has performed better than expected over the past year. He cautioned that a scenario of low growth (0-1 per cent) and high inflation (4 per cent) could feel like a recession.

He added that various macro trends, including geopolitics, energy transition, and supply chain adjustments, contribute to inflationary pressures, making it unlikely for US inflation to return to 2 per cent in the near future.

Regarding the regional banking crisis in the United States following Silicon Valley Bank’s collapse, Solomon characterized it as a short-term issue affecting specific banks with unique business models.

Also Read | Fitch raises India’s FY24 GDP growth forecast to 6.3%

However, he emphasized that the US banking system still faces several challenges that will necessitate additional capital and potentially lead to more consolidation.

Solomon’s remarks highlight his positive outlook on India’s growth prospects and the resilience of the global economy. While acknowledging inflationary pressures and the need for capital in the US banking system, he remains optimistic about India’s potential as a key growth market.

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