Timothy Moe, chief Asia-Pacific regional equity strategist at Goldman Sachs believes that in spite of a sluggishness in its markets at the start of the year and slow implementation of reforms, India will remain one of the strongest growth stories in the region, reports Business Standard.
He views the current cyclical recovery – coupled with improvements in the ease of doing business that have largely flown “beneath the radar” – as positive signs for India’s long-term growth and corporate earnings environment.
“The longer term positive drivers are the five-year very strong growth potential, the fact that we have got a cyclical recovery in the economy and what appears to us is the beginnings of a cyclical upturn in (corporate) profits.
“From a cyclical standpoint, we think the economy is also on the upward trajectory and that’s helped by a more accommodative central bank. Interest rates and inflation have been coming down. All this is starting to filter down to the corporate earnings cycle, which is the key thing driving markets,” Timothy Moe stated.
Moe feels that though some of the headline reforms such as the goods and services tax have been stalled due to political hurdles, there have been many reforms implemented at the micro level, which broadly facilitate macro growth and “should ultimately translate into better corporate earnings environment.”
“India has the potential of (annual) GDP growth of between six and seven per cent or perhaps even more. Aggregate top-line GDP growth, we think is strong, and is basically driven by very favorable demographics and low per capita income that allows more rapid growth as you catch up starting from a low base,” he concluded.
Last updated: December 26th, 2025
