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BUSINESS & TRADE NOVEMBER 20, 2026 | The Indian Eye 34

India’s growth story powers stock market

boom as foreign investors return

Ranked the world’s most resilient major economy for 2026-30, India is combining strong

GDP growth with rising corporate earnings and renewed foreign investment

OUR BUREAU
Mumbai / New Delhi

ndia’s economic growth story is receiving re-
newed international recognition, with a com-
Ibination of strong GDP projections, improving
corporate earnings and a dramatic return of foreign
investors driving optimism across financial markets.
As the country strengthens its position among the
world’s fastest-growing major economies, its stock
market is emerging as another indicator of investor
confidence in its long-term prospects.
A recent assessment by the Associated Cham-
bers of Commerce and Industry of India (ASSO-
CHAM) has ranked India as the most resilient
economy among ten major global economies for
the 2026-30 period, giving it a score of 71 out of
100. China follows with 66 points, while Japan and
Russia score 60 each. Germany is at 59, Italy and
Brazil at 53, the United Kingdom at 52, France at
40 and the United States at 36.
The ranking marks an improvement from the
2021-25 period, when India occupied third place
behind Russia and China.
The report, titled “India’s Economic Edge
in the Top Ten Economies”, prepared by ASSO-
CHAM’s Global Research and Strategy Centre us- Stockbrokers in a jubilant mood as Sensex and Nifty hit all-time highs (ANI)
ing International Monetary Fund data, evaluates
ten macroeconomic indicators, including GDP ternational Monetary Fund’s October projections global cues for India from the weakening of the AI
growth, exports, savings, investment, government also estimate India’s growth at 7% in both 2026 trade. But it is important to note that the real fun-
debt and fiscal balances. and 2027, on a fiscal-year basis. damental support to the rally has come from the
India ranks first in projected real GDP growth The country’s economic performance is in- better-than-expected Q2 results,” he said.
and real GDP per capita growth, second in gross creasingly finding an echo in its financial markets. However, the optimism comes with important
savings and gross capital formation, and third in After months of subdued performance and foreign qualifications.
export growth and debt-to-GDP ratio. “India’s investor withdrawals, Indian equities have staged a ASSOCHAM has identified fiscal consolida-
leading position in the Comparative Macroeco- strong recovery in November. On Wednesday, No- tion as an area requiring continued attention. In-
nomic Resilience Score reflects the strength of its vember 11, the BSE Sensex surged 773 points, or dia’s general government deficit, estimated at an
growth and the progress made in building its mac- 0.95%, to close at 81,879, while the NSE Nifty 50 average of 8.5% of GDP during 2021-25, is pro-
roeconomic foundations,” said Nirmal K Minda, gained 210 points to settle at 25,255. jected to narrow to 7.1% during 2026-30. “The re-
president of ASSOCHAM. The rally has been particularly significant be- port identifies fiscal consolidation as the main area
“India’s real GDP growth is projected at 6.9% cause of the return of foreign institutional inves- to watch,” said ASSOCHAM Secretary General
in 2026-30, the fastest among the ten in both peri- tors (FIIs), whose selling had weighed on Indian Saurabh Sanyal, emphasising the need for greater
ods. Its savings and investment rates are projected equities for much of the year. expenditure efficiency.
to remain among the highest of the leading econo- According to market data, foreign investors Moody’s has also cautioned that India, along-
mies. Its debt ratio is projected to decline over the purchased Indian equities worth Rs 53,170 crore side China and the US, will add significantly to its
forecast period of 2026-30,” he added. during the first nine trading days of November. overall debt stock, although its primary fiscal bal-
The outlook is reinforced by international as- Their buying has been supported by moderating ance is expected to help stabilise or reduce debt
sessments. Moody’s Ratings, in its latest report on crude oil prices, improving global sentiment and relative to GDP.
global sovereigns for 2027, expects emerging mar- stronger-than-expected corporate earnings. ASSOCHAM Chief Economist S P Sharma said
kets outside the Gulf Cooperation Council region The rally has also been supported by corpo- sustained reforms, private investment, manufactur-
to maintain growth momentum, driven by large rate performance. According to V K Vijayakumar, ing and exports would be essential to maintaining the
economies including India and Indonesia. chief investment strategist at Geojit Investments, country’s economic momentum. “Cutting the cost
The Reserve Bank of India’s October survey of the Nifty 50 advanced 8.6% in the first six trading of capital, power, compliance, logistics and labour
professional forecasters puts India’s GDP growth sessions of November. “The dramatic change in will level the playing field at home and keep India
at 7.1% for 2026-27 and 7% for 2027-28. The In- the market environment was triggered by positive the most resilient of the leading economies,” he said.

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