India Shines in Reflationary Phase: Equirus Report Highlights Growth Amid Low Inflation

• Equirus Wealth report identifies India as a bright spot among emerging markets in a new reflationary phase.
• India's appeal stems from policy-led growth, easing liquidity, and a weakening US dollar, attracting diversification from AI-centric investments.
• Despite $18 billion FII outflows in 2025, Equirus believes downside risks are limited, with global positioning reset for potential inflows.
• India is projected to contribute over 15% of global incremental GDP growth between 2025-2030, surpassing Japan and Germany combined.
• The current reflationary cycle emphasizes selective asset allocation based on earnings durability and balance-sheet strength, favoring Indian equities and government bonds.

Why It Matters: India is a key emerging market beneficiary in the new reflationary cycle, driven by strong policy-led growth.