Goldman Sachs has upgraded India’s real GDP growth for 2026 by 20 basis points to 6.9% year-on-year (YoY) after the US lowered the tariff to 18%. Goldman Sachs estimates that the effective tariff rate imposed by the US on Indian imports may be around 20 percentage points lower than the 34% earlier. However, it noted that component-level details will provide clarity. How will this impact the key economic parameters? Goldman Sachs has reduced the estimates for the current account deficit but see limited upside for the currency. Goldman Sachs cuts India CAD estimate The brokerage has lowered its estimate of India’s current account deficit by around 0.25% of GDP to 0.8% in 2026, citing improved trade conditions.