According to a recent UBS report, India could become the third-largest economy in the world by 2028, supported by strong domestic consumption and household demand. UBS projects GDP growth to stabilize at around 6.4–6.5% in the coming years, driven by robust domestic fundamentals despite global headwinds.
But UBS also warns of risks: high equity valuations, external policy shocks (like trade or geopolitical tensions), and potential rate pressures could challenge market optimism. Their view offers a nuanced take — India has a powerful growth story, but sustaining it will require balancing economic expansion with macro-financial stability.
