UBS turns bullish on India, sees growth boost
UBS upgraded emerging-market equities to attractive status as policy changes in India are expected to lift consumer spending. The investment bank cited goods and services tax simplification, income tax cuts and central bank rate reductions as catalysts for growth in Asia’s third-largest economy.
The firm raised its MSCI Emerging Markets target to 1,420 points for December and 1,470 for June 2026. Analysts favor Mainland China, India, Brazil and Indonesia as Federal Reserve easing and a weaker dollar improve financial conditions across developing nations.
India’s economy will expand 6.6 percent this year, up from 6.5 percent in 2024, the International Monetary Fund projects. Strong second-quarter performance and tax reforms will offset the impact of higher American tariffs on demand, the fund said.
Emerging markets offer technology exposure and portfolio diversification through a mix of domestic economies, such as India, and cyclical markets, such as Brazil. The MSCI index stands at 1,389 points, with UBS forecasting a 2.2 percent rise by year-end.
