India is poised to continue as one of the fastest-growing major economies globally, despite challenges such as geopolitical tensions and uncertainties surrounding artificial intelligence spending, according to Seth R. Freeman, Senior Managing Director at GlassRatner Advisory & Capital Group. Freeman expressed optimism particularly for the healthcare and automobile sectors in India, citing their strong potential for long-term growth. He emphasized that recent fluctuations in Indian equities are more a reflection of global events rather than a fundamental weakness in India’s economy.
Freeman highlighted that despite ongoing global volatility and AI-related investments absorbing liquidity, India is still achieving significant growth that is expected to be sustained. He pointed out that while foreign investor outflows have been offset by domestic investors this year, he anticipates a return of overseas capital once valuations become more attractive. Freeman also warned of periodic tensions related to the US-Iran conflict, which could lead to supply disruptions affecting global food prices due to reduced fertiliser availability.
Moreover, Freeman underscored the increasing influence of artificial intelligence on global capital flows, with substantial investments being made in AI infrastructure, data centers, and semiconductor manufacturing. He cautioned that although these investments are significant, their returns may take several years to materialize. Freeman dismissed concerns about a structural downturn in semiconductor stocks, attributing their recent decline to high valuations and persistent supply constraints.
In a related development, Goldman Sachs has revised India’s GDP growth forecast upwards to 6.8% for the calendar year 2026, citing the positive impact of the US-Iran peace deal on global oil prices and supply chain stability. The investment bank has also raised its GDP growth projection for India in the fiscal year 2027 by 40 basis points to 6.5%.
