Can Consumption Drive India's Earnings Revival in 2026? Economists Weigh In

• Economists from UBS, JPMorgan, and Axis Bank debate if India's consumption pickup can lead to a sustained earnings recovery by 2026.
• Despite resilient GDP growth, earnings have disappointed for six quarters, raising questions about the durability of recent consumption trends.
• JPMorgan's Sajjid Chinoy highlights a rotation towards consumption, led by rural demand and autos, replacing government capex and real estate as primary growth drivers.
• UBS's Gautam Chhaochharia links consumption to accelerating credit growth, noting a sharp pickup in loan disbursements as an early sign of monetary transmission.
• Axis Bank's Neelkanth Mishra suggests that low inflation and improving credit conditions could quietly support earnings, potentially leading to an upside surprise.

Why It Matters: Economists are divided on whether India's recent consumption surge will lead to a durable earnings recovery by 2026.