Indian equities have had a volatile year, with a period of correction toward the end of 2024, followed by significant pressure as U.S. tariffs and weak earnings weighed on sentiment. However, a strong policy push to revive domestic growth is set to ease inflation and fuel demand, boosting the outlook for India’s equity market.

The GST overhaul, which is the largest in eight years, follows other pro-growth policy measures announced this year, including tax cuts and monetary policy easing — the latter includes total repo rate cuts of 100 basis points (bp) and a Cash Reserve Ration (CRR) cut of 150 bp.

“Indian equities have experienced significant pressure over the past year, driven by disappointing corporate earnings,…