ANZ Research’s Group Chef Economist Richard Yetsenga says 2026 will likely be a stronger year for India as the cyclical recovery gathers pace and the impact of regulatory tightening fades. He expects improving macro stability and positive signals from the equity market to strengthen sentiment in the months ahead.

Foreign investors could return to Indian markets after a year of outflows, supported by better conditions and a more stable outlook. “The positive signals from the equity market,” he said, “are going to have more fertile ground to feed into.”

He also highlighted India’s structural progress, crediting Goods and Services Tax (GST) 2.0 for advancing fiscal discipline and policy strength. “India might be the leading economy in tax reform at the moment,” he said, adding that the coun

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