New Delhi
India is expected to remain one of the fastest-growing major economies despite global challenges, according to market expert Seth R. Freeman. He said ongoing wars, uncertainty over artificial intelligence investments, and continued foreign investor withdrawals have created market pressure, but India’s economic strength remains stable.
Freeman said the recent decline in Indian stock markets should not be viewed as a sign of weak economic fundamentals. Instead, he explained that global conflicts and heavy investments in artificial intelligence have increased market volatility. He added that strong domestic investors have helped reduce the impact of foreign investment outflows, while overseas investors are likely to return when market valuations become more attractive.
He also highlighted healthcare and automobile sectors as promising areas for long-term growth. Freeman warned that tensions involving the United States and Iran could continue, causing supply disruptions, especially in fertilisers, which may increase food prices across many countries.
Artificial intelligence is attracting massive investments in data centres, semiconductor production, and digital infrastructure. However, Freeman believes it may take several years before these investments generate significant returns. He also said the recent fall in semiconductor stocks is linked to high valuations and supply issues, not a lasting slowdown.
Meanwhile, Goldman Sachs has increased India’s 2026 economic growth forecast to 6.8 percent, reflecting improved global conditions. The stronger outlook highlights confidence in India’s economy despite continuing international uncertainties.
