India is set to become the world’s third-largest consumer market in 2026 and third-largest economy by 2028 after the US and China, as it could maintain potential real GDP growth of 6.5% year-on-year between FY28-30, said analysts at UBS in a recent report.

The report mentioned that the global growth could slow marginally to 3.1% 2026 from 3.2% in 2025, before rising to 3.3% in 2028.

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While retail flow still supports the market, UBS said, selling pressure from foreign investors and (increasingly) IPO/capital-raising activity by corporates must be watched.

“India lacks any direct artificial intelligence (AI) beneficiary stocks, unlike other larger markets. Among sectors, we prefer banks and consumer staples in the Indian context,” their analysts wrote.

UBS has assumed that

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