Banking Sector Overview
The banking sector in India demonstrated considerable strength in 2024–25, underpinned by a double-digit growth rate and a reduction in non-performing
assets (NPAs). This positive trend is expected to continue into 2026, solidifying the sector's financial health. Government discussions with the Reserve Bank of India (RBI) and Public Sector Banks (PSBs) regarding potential mergers are underway, suggesting a move towards consolidation and potentially creating larger, more robust lenders in the future. The RBI's actions, such as postponing Phase 2 of the Continuous Clearing in the Cheque Truncation System, and revisions to CTS hours, signify ongoing efforts to modernize and streamline banking operations.
Real Estate Dynamics
India's real estate market experienced notable activity in the recent past, with several indicators pointing towards significant growth. The retail sector is poised to attract approximately $3.5 billion in investment over the next three years, reflecting strong investor confidence. The net office leasing in the top seven cities reached an all-time high of 55 million square feet in 2025, demonstrating robust demand for commercial spaces. Furthermore, there has been a rise in the branded homes segment, with a 55% increase over the past five years, indicating a preference for quality and branded properties.
Market & Investment Trends
The Indian stock market witnessed significant growth. The Nifty concluded 2025 with a 10% gain, marking its tenth consecutive year of positive returns. Experts anticipate that the rally will continue into 2026. The primary market also saw unprecedented activity, with record numbers of Initial Public Offerings (IPOs) propelling India to the top spot globally. The market is projected to reach Rs 4 lakh crore in 2026. Goldman Sachs and JPMorgan expect the IPO boom to continue, boosting investor confidence.
Taxation and Compliance
Several important tax deadlines occurred recently. December 31 was the final day for linking PAN with Aadhaar, filing belated Income Tax Returns (ITR), and submitting Goods and Services Tax (GST) returns. The new Income Tax Act is scheduled to take effect in April 2025, introducing changes impacting taxpayers. The government clarified rules concerning re-employed government employees and their eligibility for gratuity under the National Pension System (NPS). Furthermore, the Income Tax Department sent alerts regarding revised ITR filings, indicating the importance of adhering to deadlines for seamless tax refunds.
Sectoral Growth Insights
Various sectors are experiencing noteworthy trends. India's AI push is expected to inject $1.7 trillion into the economy by 2035, highlighting the importance of technological advancement. The industrial output hit a two-year high of 6.7% in November 2025, fuelled by a manufacturing boost and GST cuts. Furthermore, the personal loan segment witnessed a 35% growth in 2025, driven by small-ticket loans. Also, wellness housing is forecasted to reach $7.7 billion by 2030, showing a rise in demand for specialized residential properties. These trends highlight the evolving economic landscape.
IPO Market Overview
India's primary market saw a record number of IPOs in 2025, putting India on top globally. Several companies such as Zepto and ICICI Prudential AMC are planning for IPOs or have completed their IPOs recently. The upcoming Zepto IPO aims to raise approximately Rs 11,000 crore. SEBI introduced new rules to simplify IPO document reading for retail investors. The market is anticipated to maintain its momentum in 2026, offering new investment opportunities.
