This Article is From Jun 28, 2023

"India Now Has Very High Growth Trajectory": Goldman Sachs CEO

Global CEOs are thinking about India as a big growth opportunity while recognising some of the challenges with investing in the country, Goldman Sachs Chief Executive Officer David Solomon said.

'India Now Has Very High Growth Trajectory': Goldman Sachs CEO

David Solomon said India now had a very high growth trajectory. (File)

Goldman Sachs Chief Executive Officer David Solomon said India now had a very high growth trajectory, with a predicted growth of 6-7% over the next three years, the Economic Times reported on Wednesday.

Global CEOs are thinking about India as a big growth opportunity while recognizing some of the challenges with investing in the country, Solomon told the newspaper in an interview.

Mr Solomon said over the period of a year, the global economy, and the United States in particular, have been "more resilient" than he would have expected, adding that there could be a period with "0-1% growth and 4% inflation – that will feel like a recession".

There are significant macro signs to indicate slowing growth in the world, and it was hard to see a scenario where U.S. inflation goes back to 2% "anytime soon," he said.

"There are a bunch of significant macro trends that are inflationary, such as geopolitics, energy transition and supply chain adjustments — there are headwinds."

After the US  regional banking crisis that followed Silicon Valley Bank's collapse in March, Federal regulators and the Treasury Department welcomed a decision by 11 larger banks to deposit $30 billion into First Republic Bank. Goldman Sachs was one of the banks involved in the rescue.

Mr Solomon said the regional banking crisis was short term, affecting a handful of banks with very specific business models. But the banking system in the US is dealing with a handful of issues which will ultimately require more capital, triggering more consolidation, he told ET.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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