New Year 2026 holds promise for markets

As the New Year dawns, the outlook for the Indian economy — and by extension the equity market — appears distinctly encouraging.

- Guest Column Dr V K Vijayakumar

Macroeconomic fundamentals are in robust health.Despite the drag from renewed and draconian tariff measures under a second Trump presidency, India is projected to deliver GDP growth of around 7.3% in FY26, placing it among the fastest-growing major economies. Inflation has been remarkably benign, with CPI trending close to 2%, well below the Reserve Bank of India’s medium-term target of 4%. Both the fiscal deficit, at 4.4% of GDP, and the current account deficit, at 1.6%, remain firmly under control.