Corporate India’s revenue growth over the last four quarters has been slower than nominal growth in the gross domestic product and is weighing on market sentiment, according to a senior Macquarie analyst.
“Earnings growth has to be nominal GDP plus X. But in the past four quarters, revenue growth of the broader MSCI India companies has been 5-6%. It has been GDP minus rather than GDP plus,” Aditya Suresh, managing director and head of equity research-India at Macquarie Capital, told NDTV Profit. “We have seen margin erosion.”
India’s nominal GDP growth rate was 9.9% in the financial year 2025 and 8.8% in the first quarter of FY26, as per government data.
Foreigners have alternatives like South Korea and Taiwan over India. The markets are only finding support for domestic investors, he pointed out.
