India to gain at China's expense, predicts Goldman, sees growth exceeding 6%

Goldman Sachs sees India pipping China in investments with the country's economic growth exceeding 6% for the rest of the decade.
 
The long term growth potential is likely “inching higher toward 6.5%, or slightly higher,” Goldman's Santanu Sengupta said in an interview with Bloomberg Television’s Haslinda Amin Friday. 

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

India’s demographics, strong government-led spending and healthy domestic demand makes it a “favorable destination for investments going forward,” he said. 

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%. 

Goldman Sachs expects the private sector in India to accelerate investments after the Lok Sabha 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.