New Delhi [India], November 20 : A new global investment outlook has identified emerging market equities as a major pillar of potential opportunities for 2026, with India featuring prominently due to its strong macroeconomic fundamentals, demographic advantages and rapid digital transformation.
According to the "Investment Outlook 2026" report by Goldman Sachs Asset Management, emerging markets are well-positioned to benefit from moderating inflation, a softening US dollar and resilient corporate earnings.
Among these markets, India continues to command investor attention, driven by a combination of solid GDP growth, strong corporate performance and deepening domestic consumption trends.
The report notes that India's sustained economic momentum is translating into steady corporate earnings, underlining the country's resilience even as global markets face volatility.
"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," the report stated, highlighting the structural strengths supporting India's equity market.
One of the defining features of India's economic transformation, the report points out, is the explosive rise in digital payments. The volume of digital transactions in India has surged threefold since June 2021, reflecting the fast-paced adoption of technology, deepening financial inclusion, and the scale of the Unified Payments Interface (UPI).
The report view this as a marker of accelerating formalization and rising consumption efficiency across sectors.
The report further underscores that India's demographic profile remains among its most powerful economic enablers.
With 65 per cent of its population below the age of 35 and a median age of just 28, India is demographically a decade younger than both the US and China.
This young workforce, coupled with rising disposable incomes and expanding urbanization, continues to support domestic demand, a key driver of India's long-term growth trajectory.
A significant insight from the outlook is the acknowledgement that emerging markets are increasingly at the forefront of global AI and semiconductor innovation.
Alongside China, South Korea and Taiwan, India is highlighted as one of the standout markets contributing to advancements in artificial intelligence, chip design and digital infrastructure.
The report believe this technological push further strengthens India's competitive edge, particularly as global supply chains diversify.
While the broader emerging market basket trades at a valuation discount compared to developed markets, the report argues that this gap may narrow in 2026 as earnings visibility improves. For India specifically, the combination of robust macro stability, growing technology leadership, and strengthening domestic sectors positions it attractively for global investors seeking high-quality growth exposure.
The report says, as global investors recalibrate portfolios amid geopolitical shifts and evolving monetary conditions, India's distinctive fundamentals continue to make it one of the most compelling investment destinations in the emerging market universe.