Archive · 19 Aug 2026
India's FY27 Recovery Hinges on Investment, Earnings and Growth
Taher Badshah thinks India's economy and stock market could improve in FY27.
He says several helpful factors may support this recovery.
These include last year's policies, a good monsoon, easier comparisons with the previous year and better company earnings.
He believes India needs more investment in factories and industry.
Government spending helped growth before, but private companies now need to invest more too.
About half of listed companies are growing their earnings by at least 15 per cent.
Badshah likes industrial, healthcare, consumption and some new-age companies.
He is more careful about commodities because their prices are difficult to predict.
Invesco Mutual Fund's Taher Badshah says FY27 could be a recovery year for India.
Favourable base effects, earlier policy measures, a strong monsoon and improving earnings may support growth.
Badshah says India needs a new investment cycle led by manufacturing, industrial capacity and private investment.
About half of listed stocks are reporting earnings growth of at least 15 per cent, with many exceeding 20 per cent.
He favours industrial, healthcare, consumption and selected new-age businesses, while remaining cautious on commodities.
- Who
- Taher Badshah, president and chief investment officer of Invesco Mutual Fund.
- What
- He expects FY27 to be a recovery year for India and outlines his investment preferences and economic concerns.
- When
- The outlook covers the next 12 to 15 months and FY27; Badshah said this view has been maintained since the start of 2026.
- Where
- The interview took place in Mumbai.
- Why
- A favourable base, previous policy measures, the carryover effect of a good monsoon and improving corporate earnings could support recovery, although investment remains below desired levels.
- Outlook
- FY27 is expected to be a recovery year for India.
- Earnings growth
- About half of the listed universe is delivering earnings growth of 15 per cent or more.
- High-growth companies
- Many companies are reporting earnings growth above 20 per cent.
- Needed investment
- Badshah calls for a new investment cycle focused on manufacturing, industrial capacity and stronger private investment.
- Preferred sectors
- Industrial companies, healthcare, consumption and selected new-age businesses are viewed as attractive growth areas.
- Value opportunities
- Some IT services and banking companies have reasonable valuations despite currently weak performance.
- Commodity view
- The fund remains relatively cautious on commodities because their cycles are difficult to predict.
- Return focus
- The investment approach seeks businesses capable of compounding earnings at 15 per cent or more, rather than targeting a fixed return.