ANZ’s Yetsenga says 2026 to be stronger year for India as cyclical recovery builds

ANZ Research’s Group Chef Economist Richard Yetsenga says 2026 will likely be a stronger year for India as the cyclical recovery gathers pace and the impact of regulatory tightening fades. He expects improving macro stability and positive signals from the equity market to strengthen sentiment in the months ahead.Foreign investors could return to Indian markets after a year of outflows, supported by better conditions and a more stable outlook. “The positive signals from the equity market,” he said, “are going to have more fertile ground to feed into.”

He also highlighted India’s structural progress, crediting Goods and Services Tax (GST) 2.0 for advancing fiscal discipline and policy strength. “India might be the leading economy in tax reform at the moment,” he said, adding that the country is now ahead of many advanced economies such as UK, France, Japan, and even the US, all of which are grappling with fiscal challenges.

Yetsenga remains calm about the US outlook despite recent market swings and soft labour data. While there’s a lot of noise, he believes the American economy still appears pretty constant, which has led to scaled-back expectations of aggressive Fed rate cuts.Also Read: Gold’s rally backed by fundamentals, not froth: World Gold Council’s Sachin Jain

He cautioned against reading gold’s record rally as a signal of global panic. Instead, he said, it reflects underlying weakness in the US dollar. “It’s hard to find a reason not to own gold,” Yetsenga said, adding that the metal’s surge “is telling us about the dollar” rather than a broader crisis.

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For the entire interview, watch the accompanying video

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