India

Indian equity markets advanced ahead of the Union Budget 2026-27, as investors positioned themselves in anticipation of policy signals on growth, spending, and fiscal discipline. Benchmark indices recorded modest gains, supported by selective buying in heavyweight stocks and expectations of continued government focus on capital expenditure. Improved domestic macro indicators and relatively stable global cues also contributed to the positive tone.

India’s Goods and Services Tax (GST) collections rose to Rs. 1.93 lakh crore in January, reflecting sustained economic activity and improved tax compliance. The robust inflow underscores the resilience of domestic consumption and manufacturing, even as global conditions remain uncertain. Higher revenues were supported by steady growth in both domestic transactions and imports, reinforcing confidence in the country’s indirect tax framework.

Indian equity markets remained volatile in the run-up to the Union Budget 2026-27, as investors weighed policy expectations against global economic uncertainty. Benchmark indices swung between gains and losses, reflecting caution ahead of key announcements on fiscal strategy, taxation, and government spending. Market participants are closely tracking signals on capital expenditure, fiscal deficit management, and sector-specific incentives that could influence earnings outlooks.

Finance Minister Nirmala Sitharaman met President Droupadi Murmu on the eve of presenting the Union Budget for fiscal year 2026-27, marking a key constitutional step before the annual financial statement is tabled in Parliament. The customary meeting underscored the government’s final preparations for a budget expected to balance fiscal discipline with growth priorities. Against a backdrop of moderating inflation, evolving global risks, and domestic demands for jobs and investment, the budget is anticipated to outline the government’s economic roadmap for the coming year.

India’s Union Budget 2026 is expected to balance growth stimulation with fiscal prudence as policymakers navigate global uncertainty and domestic development priorities. With inflation moderating and capital expenditure emerging as a key growth lever, the government is likely to focus on infrastructure expansion, manufacturing incentives, and employment generation. Tax rationalisation, targeted social welfare spending and green investment may also feature prominently. Markets will closely watch fiscal deficit projections, borrowing plans and policy signals for private investment.

India’s foreign exchange reserves have climbed to a historic peak of USD 709.413 billion, underscoring robust external sector stability amid global financial uncertainty. The surge in reserve levels reflects strong foreign currency assets, proactive Reserve Bank of India (RBI) management, and steady capital inflows. A healthy reserve position enhances macroeconomic resilience, supports the rupee, and provides a buffer against external shocks, including trade disruptions and currency volatility. Analysts view this milestone as a testament to prudent economic policy and investor confidence.

Indian equity markets ended lower in cautious trading as investors pared exposure ahead of the Union Budget, awaiting clarity on fiscal priorities, taxation and growth-focused reforms. Weak global cues and selective profit-booking added to the pressure, dragging benchmark indices into negative territory. Market participants adopted a wait-and-watch approach, with heightened volatility reflecting uncertainty over potential policy signals for infrastructure spending, fiscal consolidation and sector-specific incentives.

Cash withdrawals from automated teller machines declined significantly in 2025, reflecting a broader structural shift toward digital payments and electronic financial transactions. The trend highlights changing consumer behavior, driven by widespread smartphone adoption, real-time payment systems and expanding fintech ecosystems. Financial institutions are adapting by optimizing ATM networks while investing more heavily in digital infrastructure. The decline does not signal the disappearance of cash but underscores its reduced dominance in urban and semi-urban economies.

India’s retail real estate sector demonstrated remarkable resilience in 2025, with leasing activity surging 54% year-on-year, according to a recent industry report. The growth reflects rising consumer confidence, increasing footfalls in urban centers, and expanding organized retail chains. Analysts note that strong demand is concentrated in high-street and mall-based retail spaces, driven by a combination of domestic consumption recovery and strategic expansions by national and international brands.

India’s luxury residential property market, which has witnessed an extraordinary post-pandemic surge, may be approaching a period of slower growth by FY27, according to emerging industry signals. Strong demand from high-net-worth individuals, rising urban wealth, and premium project launches have driven record sales and price appreciation across major metros. However, affordability pressures, elevated interest rates, and a potential normalization in investor appetite could temper momentum.