Prime Highlights:
- Experts say 2025 laid the groundwork for stronger economic growth and higher corporate earnings in 2026.
- India is exploring new global partnerships, including collaborations with Chinese companies and other international markets.
Key Facts:
- Nominal GDP is expected to rise to 10% in 2026, up from 9.2% in 2025, potentially driving double-digit corporate earnings.
- Financial companies are expected to benefit as borrowing picks up and interest margins improve.
Background:
India’s stock markets looked quiet in 2025, but experts say the year has prepared the economy for stronger growth in 2026. According to Taimur Baig, Managing Director and Chief Economist at DBS Group, the economy is quietly positioning itself for faster growth and healthier corporate earnings.
Baig emphasized that instead of dwelling on weak equity returns, 2025 should be seen as a year of groundwork. “Even if headline numbers suggest the stock market was listless, transaction-level activity shows a stronger year in terms of per-deal revenue,” he said.
India’s economy looks strong, with GDP expected to grow 10% in 2026, up from around 9.2% in 2025.
However, global uncertainties remain a challenge. The United States continues to have a big impact on Indian exporters, and Baig emphasized that Indian businesses need to reduce their dependence on the US market. Emerging markets in the Middle East, Europe, and East Asia are now becoming important not only for exports but also for technology sourcing and investment opportunities.
Baig also said that foreign private equity exits from India are a positive sign. They show that the market is maturing and that long-term investments in India can bring good returns.
He also pointed out that China is making significant progress in areas like drug development and biotechnology. This opens up opportunities for India to work with Chinese companies, like in the electric vehicle sector.
Experts say India is ready for strong growth in 2026 and beyond, backed by active markets and new global partnerships.
