Why Indian shares are worst performers

It was supposed to be an oasis in an otherwise turbulent world. For a long time, when the Indian story was sold to investors, it was the soaring domestic consumption story that attracted them. Government capital spending and household spending by the rising middle class were considered drivers of India’s growth that could not be affected by external problems. Since December 2024, the India story has been in relative decline. Indian shares have underperformed the rest of the world so far in 2026. Other emerging markets and Asian equities have also clocked significantly higher returns. Over the past 12 months,…