Indian Economy Remains Resilient Amid Global Uncertainty
The ongoing conflict in West Asia has led to increased oil and freight prices, as well as foreign investors pulling out $12 billion from Indian equities. However, on the ground, the Indian economy remains relatively unaffected, with the rupee holding steady, consumption levels unchanged, and deal conversations continuing unabated.
Growth Projection Holds Steady
India's growth is being driven largely by domestic factors, and the Economic Survey's 6.80-7.20 per cent growth projection for 2026-27 is still on track. Government spending continues, and banks are in a better shape than they were a few years ago.
Foreign Direct Investment Rises
- Over $73.30 billion has flowed in as foreign direct investment (FDI) in April-December 2025.
- Cumulative inflows have surpassed $1.1 trillion.
Investors Seek Predictable Returns
Investors are shifting their focus towards assets offering greater visibility, with demand continuing even in uncertain times. The continuity builds confidence, and predictability makes a difference, especially in real assets.
Expert Insights
Ankit Agarwal, managing director, Alankit, states: "The ceasefire in West Asia may be shaping near-term market narratives, but for India, it is a constructive development."
Real Estate Sees a Shift
- For a long time, real estate moved in cycles and was often driven by timing.
- However, that is now changing, with real estate being seen as a long-term store of value.
- Industry estimates suggest 18-22 per cent of housing demand in India comes from non-resident Indians (NRIs).
Buyers Approach Real Estate Differently
Ankush Kaul, president – sales, marketing and CRM, Central Park, states: "There is a noticeable change in how buyers are approaching real estate today. The conversation has moved beyond price cycles to long-term value."
Domestic Participation Drives Market
SIP inflows of around Rs 31,000-32,000 crore a month show that investors are continuing to invest steadily.
Portfolios Become More Balanced
- Many investors are now adding international funds to reduce dependence on a single market.
- Over the last year, a large number of these funds have delivered double-digit returns.
Stability Becomes a Priority
- Inflows in gold exchange-traded funds (ETF) of over Rs 24,000 crore per month reflect a clear move towards stability.
- Investors are not buying gold just to earn returns, but to protect their money during uncertain times.
Expert Insights
Ajay Kumar Yadav, Group CEO & CIO, Wise Finserv (Private Wealth), states: "It doesn't feel like a reaction to a one-off global event. What we are seeing feels more like a change in investor sentiment."
NRIs Prioritise Security and Visibility
Vijay Ram Rattan, chairman, Ram Rattan Group, states: "There is a clear shift in how NRIs are looking at India today. Earlier, investments were often split across markets."
Conclusion
The shift towards stability and predictability is structural, and in a world where uncertainty is becoming more frequent, it is exactly the kind of change long-term investors pay attention to. India is starting to offer that comfort to investors, making it an attractive destination for long-term investment.