12 MARCH 2026
Rebased for Growth
Why is India’s economic outlook strengthening? India is projected to become the world’s fourth-largest economy in 2026, supported by structural reforms, favourable demographics and rapid digital adoption. A recent GDP rebasing better reflects the economy’s transition toward capital-light, high-productivity sectors.
These structural advantages reinforce the narrative that India may finally be positioned to unlock its huge growth potential.
Is growth accelerating? Recent data suggests economic momentum is improving, with GDP growth surprising to the upside. But it needs a cyclical upturn to do so because structural advantages alone are rarely sufficient to drive a sustained equity market rerating.
What does this mean for investors? A combination of structural tailwinds and cyclical recovery could provide the foundation for stronger earnings growth and renewed investor optimism, potentially supporting higher market valuations over time.
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