Perspective June 2026 What is right with India
Beyond the noise, India's growth indicators continue to paint a picture of resilience.
Aarati Krishnan
Aarati is a leading voice in the Indian financial services space. She has been tracking and writing about the entire gamut of financial products and regulations for over 25 years now. She is currently Editorial Consultant for the Hindu Business Line and was earlier a consulting editor for Value Research Online. For her pioneering work in writing on financial services and the economy, she was awarded the Shriram Sanlam award for excellence in Financial Journalism thrice. LinkedIn | Twitter
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7 thoughts on “Perspective June 2026 What is right with India”
Nice positive article. But the issue largely centres around rupee depreciation. FPI will continue to decelerate as it is the relative attra ctiveness of US (nasdaq) and asian markets like Korea and HKG. FPI will chase these markets and continue to skip India. While the domestic indian economy is largely intact and even growing (save monsoon fears), GOI has to address the trade deficit in a big way.
It is true that India is far behind in the AI LLM race. But as AI adoption takes shape in enterprises Indias services heavy economy should benefit. Also there are risks that the AI capex buildout is overdone. Everytime this fear pops up India will get some FPI flows as a non AI capex market.
In my view, the immediate challenges and likely impediments are:
A lingering uncertainty on the Iran War – If both parties go back and nullify the understandings entered into or are being deliberated, oil will trun a villain for India !
More disturbing will be the severe monsoon shortfall estimated across India for the current year 2026. This can be far more damaging than the crude ‘demons’ from the Iran war !
The PMI (mfg.) and related parameters on industrial output is uninspiring and shows a lukewarm growth. Moreover, it seems that broadly there is an underutilised capacity of about 15-20%. If so, where is the incentive to commit new investments by the businessmen ?
Rupee blues will continue to haunt India, I feel.
Summing up, all these are formidable and how much each will play spoilsport needs to be seen !
Of these sir, the monsoon is the biggest worry. The oil markets are already responding to improved supply irrespective of whether the Iran deal comes through. India Inc has always reported capacity utilisation of 70 to 75% only. In fact capacity utilisation today is above 75% which is a trigger for new capex.
Thanks Ms. Aarati for the valuable response. Yes, the biggest hurdle is the monsoon. Hope and pray that it picks up and rallies from now !!
Nice article, numbers are more reassuring than stories, plus with the Oil flowing, and also RBI easing up on FCNRs, it’s imminent that the tide will change.
Yes they provide a reality check when stories go out of hand!