The country is experiencing record-breaking IPO activity and robust investor confidence, underpinned by a resilient start-up ecosystem and sustained institutional investment. At the same time, India’s digital transformation continues at pace, with advances in payments infrastructure, connectivity, and semiconductor manufacturing positioning the nation as a global technology leader. On the international front, new trade agreements and deepening bilateral partnerships are opening fresh opportunities for growth and collaboration. Together, these developments highlight India’s dynamic progress and its growing influence in the global economy.
Capital Markets and Investment Trends
India’s capital markets have entered 2026 with remarkable momentum. IPO fundraising is projected to reach $25 billion, marking a third consecutive record year. This surge is underpinned by strong investor demand, a robust pipeline of new listings, and a maturing start-up ecosystem. While private equity investment slowed in 2025 amid global uncertainty, early-stage investments and steady unicorn creation highlight the resilience and evolution of India’s entrepreneurial landscape. The Boston Consulting Group reports that the country also leads globally in shareholder returns over the past decade, with sector rotation favouring industrials, green energy, metals & mining and technology. Institutional investment in real estate has soared, and the InvIT and REIT market has delivered robust growth, reflecting confidence in India’s long-term economic outlook.
Technology & Digital Transformation
India’s digital economy continues to accelerate. The Unified Payments Interface (UPI) remains the world’s largest real-time payment system with transaction volumes and user adoption reaching new highs. The telecom sector has achieved historic expansion, crossing one billion internet connections and supporting the growth of e-commerce, fintech, and digital services. Semiconductor manufacturing has advanced, with commercial chip production now underway, marking a major step towards building a self-reliant electronics sector. Global capability centres are increasingly driving technology hiring, as AI adoption and product-led roles become more prominent across industries. The country’s satcom (satellite communications) sector is also poised for a decade of sustained expansion, further strengthening India’s digital infrastructure.
International Trade & Bilateral Relations
India’s international trade relationships are strengthening, with new agreements and partnerships coming into effect. The India–Oman Comprehensive Economic Partnership Agreement (CEPA) is set to boost trade and energy security, while a forthcoming Free Trade Agreement with New Zealand will eliminate tariffs on most exports. Collaboration with the Netherlands is also deepening, supporting trade, investment, and mobility. India’s automotive sector is entering 2026 with strong policy support and a focus on advanced technologies, positioning the country for continued growth in global markets. These developments underscore India’s growing influence in the global economy and its commitment to fostering international cooperation.
Looking Forward
DWF is a leading legal adviser to Indian and India-focussed companies, financial institutions and high net worth individuals and families. Our India Group, consisting of 115 lawyers from 9 countries, 16 practice areas and 9 sector groups, is the largest India group of any international law firm located outside India.
Dhruv Chhatralia BEM, the Head of the DWF India Group, was named to the India Business Law Journal’s (IBLJ) International A-List 2024 featuring the world’s top-tier international lawyers outside India, based on recommendations by general counsels and lawyers at Indian law firms, for his work on cross-border aspects of India-related matters. DWF was ranked as an International Firm to Watch by the IBLJ in 2025. DWF was also shortlisted for the award of “Legal Practice of the Year” at the 6th Annual UK-India Awards in 2024 based on the achievements of the DWF India Group. Further details about the DWF India Group can be found on the following webpage: https://dwfgroup.com/en/services/india-group.
We would like to thank Dhruv Chhatralia BEM, Radhika Ruparelia and Kirsty Wright for their contributions to this article.
