What Will Bolster India Inc's Corporate Earnings and Investment Appeal In 2026?

Among emerging markets in 2026, India is expected to witness steady corporate earnings buoyed by strong growth in gross domestic product (GDP), according to a Goldman Sachs report.

In FY26, the south Asian economy is expected to record a 7.4 per cent growth as against 6.5 per cent growth in the previous fiscal year, as per Ministry of Statistics and Programme Implementation.

Favourable Factors For India Inc In 2026

1. Strong GDP growth is driving steady corporate earnings.
2. The volume of digital payments in India has surged, expanding threefold since June 2021.
3. 13 Favorable demographics and domestic consumption trends underscore India’s investment appeal.
4. 65% of India’s population is below 35 years of age. The country has a median age of 28, roughly ten years younger than the US and China, respectively. 

This comes ahead of the Finance Minister Nirmala Sitharaman set to likely table the Union Budget on February 1, 2026. As part of her budget speech, she will also disclose the government’s books of accounts, including its receipts and expenses, whilst sharing insights on tax collection from both common individuals and corporate institutions. 

Meanwhile, other indicators that support positive sentiments in FY26 includes expectations that nominal GDP will grow at 8.0 per cent in FY 2025-26. On the other hand, services sector has majorly driven growth in the estimated Real GVA growth rate of 7.3 per cent in FY26.

Financial, real estate and professional services and public administration, defence & other services in the tertiary Sector have been estimated to attain a growth rate of 9.9 per cent at Constant Prices in FY 2025-26.

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How Will Other Emerging Markets Fare In 2026? 

The outlook for China seems positive backed by recent stimulus to boost consumption and tech innovation, which is enhancing China’s appeal, according to Goldman Sachs. 

"In our view,but stock selection is key to seek out real earnings growth and avoid policy risks. We are focused on emerging themes: advanced manufacturing, technology innovation (AI, robotics, EVs and clean energy, biotech and fintech), resilient consumption, and defensive companies paying high dividends, as per the brokerage report.