India will grow at about 8 per cent until 2020, according to a new report by Goldman Sachs that sharply lifts the investment bank’s forecast of the country’s long-term growth rate.

In a 2003 report on the so-called Brics economies of Brazil, Russia, India and China, the bank had predicted a 5 per cent long-term Indian growth rate. But its new forecast would see India overtake the US to become the largest economy in the world after China by 2042.