Global markets 2026: India shines in Goldman Sachs AM’s emerging markets outlook; digital boom, demographics drive optimism
The report places emerging market equities at the centre of potential gains next year, supported by easing inflation trends, a softer US dollar and improving earnings performance across developing economies.Within this landscape, India has been highlighted for its combination of strong GDP growth, resilient corporate earnings, and a rapidly expanding consumer base, as per news agency ANI.
The report said, “In India for instance, we believe sustained GDP growth can continue to fuel solid corporate earnings.
We are focused on finding fundamentally strong domestically-oriented opportunities in the country.”Goldman Sachs AM links this earnings momentum to India’s broader economic strength, noting that local demand continues to deepen due to rising disposable incomes and structural consumption trends.
The country’s demographic profile plays a crucial role too.
65% of Indians are under 35, and the median age is 28, making India a decade younger than the US and China, reported ANI.
This youthful population, along with ongoing urbanisation, is expected to keep domestic demand buoyant.A major theme in the report is India’s accelerating digital transformation.
The volume of digital payments has tripled since June 2021, a surge driven by UPI adoption and rising financial inclusion.Goldman Sachs AM sees this as a sign of increasing formalisation and improving efficiency across the economy.India is also named among the emerging markets pushing forward global innovation in AI, chip design and digital infrastructure, alongside China, South Korea and Taiwan.
This technology thrust, the report notes, is boosting the country’s competitive positioning at a time when global supply chains continue to diversify.While emerging markets currently trade at a valuation discount to developed economies, Goldman Sachs AM believes this gap could narrow in 2026 as earnings visibility strengthens.
For India, the combination of macroeconomic stability, technology-led progress and strong domestic sectors makes it one of the most compelling destinations for global investors seeking quality growth exposure.
