TNI Bureau: American multinational investment banking firm Goldman Sachs Group raised India to ‘overweight’ from ‘market-weight’, citing country’s economic growth will be strong in the upcoming year. Even though, India has been criticised for its worst economic policies, the firm believes that things will improve gradually under guidance of new finance minister P Chidambaram.

Goldman Sachs forecasts that India’s economy may rise to 7.2% in 2014 from expected 5.4% in 2012. The growth will remain high between 2015-1016.

The firm appreciating the current economic initiatives and reforms said that the move will create optimism among domestic investors.

In a note to clients on Thursday, Goldman said that MSCI India’s valuation was well below its five-year average of 14.9 times. Despite inflation and high price rise in the country, it is less affected as compared other markets in Asia.