Indias economic growth may exceed 6% for rest of the decade: Goldman Sachs

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. Potential growth is an estimate of the pace an economy can grow at withoucuts ausing 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.

Businesses have deleveraged aggressively and their balance sheets are among the “cleanest that we have seen India in the last 20 years or so,” he said.  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 cut.