Goldman Sachs: India's economic growth may exceed 6% for rest of the decade

India’s economic growth may exceed 6 per cent for the rest of the decade, driving more investments from China into the South Asian country, Goldman Sachs Group Inc.’s India economist said.

The long term growth potential is likely “inching higher toward 6.5 per cent, or slightly higher,” Santanu Sengupta said in an interview.

The forecast growth at 6.3 per cent for the next fiscal year that starts in April, lower than Reserve Bank of India’s projection of 7 per cent. 

Potential growth is an estimate of the pace an economy can grow at without causing excess inflation. India’s central bank governor last month estimated the nation’s potential growth rate was around 7 per cent.

Goldman Sachs expects the private sector in India to accelerate investments after nationwide elections. 

The Reserve Bank of India is expected to wait for the Federal Reserve to move before adjusting monetary policy, he said, adding that the RBI’s actions will come in three phases, including easing liquidity, a change in the policy stance followed by interest rate cuts