New Delhi, Dec. 18 -- Despite equity market underperformance triggered by geopolitical tensions, global investment firm Invesco has expressed cautious optimism on India's economic outlook for 2026, citing progress on domestic reforms, scope for improved US-India relations and monetary easing by the Reserve Bank of India (RBI).

In its 2026 Annual Investment Outlook, Invesco said India is expected to remain the world's fastest-growing large economy, with growth likely to modestly accelerate next year as interest rate cuts begin to support domestic demand. The firm noted that while near-term market sentiment has been weighed down by global uncertainty, India's medium-term fundamentals remain resilient.

"Despite equity market underperforman...