Global investment bank UBS has ranked India among the most attractive emerging markets for investors, highlighting its resilient economy, strong consumption trends, and reform-driven growth.
In its latest outlook, UBS upgraded Emerging Market (EM) equities to “Attractive,” citing an improving macroeconomic environment supported by U.S. Federal Reserve easing and a softer U.S. dollar. The report places India, China, Brazil, and Indonesia as top picks for global investors seeking growth amid shifting global dynamics.
UBS projects India’s GDP growth at 6.6% for FY26, slightly higher than 6.5% in the previous fiscal year, driven by GST simplification, income tax cuts, and accommodative monetary policy.
Strong Domestic Fundamentals Support Investor Confidence
According to UBS, India’s domestic fundamentals continue to outshine global peers, buoyed by rising consumption, infrastructure expansion, and manufacturing investments. The report emphasizes that India’s equity market now provides structural exposure to technology, banking, and consumption sectors — making it one of the few emerging markets offering both cyclical recovery and long-term secular growth.
The International Monetary Fund (IMF) echoed a similar sentiment in its Asia-Pacific economic outlook, upgrading India’s forecast for FY26 to 6.6%, citing robust Q2 performance and the positive effects of GST 2.0 reforms. The IMF noted that India’s resilience has helped offset the negative impact of higher U.S. tariffs on exports, reflecting the strength of its domestic demand.
Broader EM Outlook Strengthened by Global Recovery
UBS raised its MSCI Emerging Markets Index target to 1,420 by December 2025 and 1,470 by June 2026, signalling optimism about investor sentiment and capital flows into developing economies.
The report added that emerging markets have evolved beyond their traditional dependence on commodities, now offering exposure to high-growth sectors such as digital infrastructure, renewable energy, healthcare, and manufacturing.
UBS analysts noted that India’s youthful demographics, policy stability, and reform momentum make it a long-term outperformer among EM peers. “India’s story is no longer just cyclical—it’s structural,” the report concluded, reflecting strong investor confidence in the country’s economic trajectory.