Market & Growth
The Indian stock market demonstrated remarkable resilience, with the Nifty closing up 10% in 2025, marking its tenth consecutive year of gains. Market
analysts, including Goldman Sachs and JPMorgan, anticipate this record-breaking IPO boom to extend into 2026. In November 2025, industrial output reached a two-year high of 6.7%, driven by a boost in manufacturing and GST cuts. India is expected to overtake Germany to become the world’s third-largest economy and is eyeing that spot by 2030.
GST & Finances
India's GST collection rose by 6.1% year-on-year to reach Rs 1.74 lakh crore in December 2025, indicating robust economic activity. The fiscal deficit for April-November reached Rs 9.8 lakh crore, accounting for 62.3% of the target for FY26. The government announced Rs 4,531 crore in support for exporters. Furthermore, the Reserve Bank of India (RBI) is working towards strengthening Indian banks, evidenced by double-digit growth and falling NPAs in 2024–25.
IPO Boom Ahead
Record-breaking IPO numbers positioned India at the top globally, with the primary market anticipating approximately Rs 4 lakh crore in 2026. Companies like Zepto prepared for a Rs 4,000-crore public offering. Market activity remained high with various IPOs and their associated GMPs (Grey Market Premium), reflecting the active investment climate. ICICI Prudential AMC IPO listed at Rs 2,600 per share, which was 20% premium over its initial price.
AI’s Impact
AI adoption is expected to significantly influence the job market in 2026. The 'Godfather of AI' predicted job displacement, with certain roles at risk. India’s AI push is projected to add $1.7 trillion to the economy by 2035, underscoring the technology's critical role. Simultaneously, the focus on digital transformation is influencing different industries and job roles.
Tax & Policy
Tax planning is crucial for freelancers and gig workers, with the December 31 deadline looming for various tax-related activities, including PAN-Aadhaar linking and filing of ITR. A new Income Tax Act is set to be effective from April 1, 2025, introducing changes. The government announced support for exporters worth Rs 4,531 crore. Also, the deadline to link PAN with Aadhaar was on December 31.
Sectoral Trends
Several sectors displayed noteworthy trends. Defence stocks, such as BEL and Garden Reach, experienced significant YTD gains, reaching up to 45%. Silver prices showed fluctuations, with a record high followed by a sharp fall. Cigarette and pan masala prices are set to rise from February 1 due to the government's excise duty hike, which came after a 7-year freeze. Steel stocks saw gains of 2–4% due to safeguard duty.
Loans & Rates
Home loan interest rate comparisons were significant in December, as lenders offered varying rates. Union Bank of India reduced home, vehicle, and personal loan rates. India witnessed a 35% growth in personal loans in 2025, mainly driven by smaller loan amounts. One article highlighted the highest default rate in India, which was observed in a particular type of credit.
