Is India heading towards recession in 2025 or 2026?
Indian stock market has been trading in a range for the last 3 years. Ever since the process of making new life highs has stopped, the stock market has been signalling that the downside is opening. But no expert of the Indian stock market is ready to tell this truth, nor is any business news channel ready to admit it. In this article, we will understand in a very easy way that the Indian stock market is now tired, and until there is a major reform, the market will not take the upward path.
Is the Indian stock market falling due to tariff war?
Many people are blaming the tariff war for this fall, but you have to understand that a tariff war is not responsible for the fall in the Indian stock market. There are many internal factors in India which are not allowing the stock market to go up, such as political instability which can be seen in the upcoming elections. If we understand correctly, we have got indications of this in the 2024 elections as well, when the "Modi" card could not help BJP form the government on its own. The stock market always decides its direction by looking at the upcoming time. Therefore, perhaps one factor can be the biggest factor.
India's deteriorating relations with the USA are also playing a small role in the tariff war, but that is a short-term factor. Donald Trump will not always be president. Therefore, it will never be in his mind that relations with India will be spoiled forever.
Are deteriorating relations with Europe bringing down the Indian stock market?
Every day we keep hearing and seeing on media news channels, newspapers, and social media that sometimes some official authority has given a statement against India and sometimes there is a debate on some European official news channel about the deteriorating relations with India. The Indian market is also estimating that perhaps the Western and European countries are not very happy seeing India's growth.
Will BRICS working together take India's growth story forward?
Yes, the BRICS countries have agreed to trade in Indian currency. Russia has always stood with India like a brother and India has also always fully supported Russia. Now India is starting good relations with China from the business point of view, but still the Indian government should definitely think about it once because China has always betrayed India. And China will never want India to progress.
Can Indian stock market show upside after Bihar State election?
If BJP wins the election in Bihar, then it is possible that Indian stock market will show short-term bounce back but in the long term it is very difficult to say that the upside will continue.
Can Pakistan attack India?
Yes, Pakistan can attack India at any time. If some people are thinking that Pakistan's economy is in a very bad state, so Pakistan cannot attack India, then this is wrong. When the war between Ukraine and Russia started, all the people and experts were saying that Russia will destroy Ukraine in 1 week, but nothing like this happened because Ukraine had full support of NATO countries. Even if Trump, the USA President, shows whatever he wants in the international media that he wants to stop the war, but all this was done to show in the media.
By giving full support to Pakistan, it can attack India at any time and if this happens, it will have a very bad effect on the Indian economy. Although Pakistan will lose this war against India. If Pakistan is doing such planning with the support of USA then Pakistan should rethink it, because the bad economic condition of this country is in front of the whole world. Pakistan will not survive against India in any war.
Will reducing GST give any boost to Indian economy?
In this week of Sept 2025, Indian Government has definitely tried to attract Indian consumers to some products by implementing GST, but this will not give much positive results to Indian economy. The decision to implement GST after 50% tariff imposed by USA was expected to a great extent, and on the same day Indian stock market also gave thumbs up to this decision for a few hours but the market could not sustain at the higher levels and again came under the grip of profit booking.
Can Indian economy go into recession in 2026?
Yes, we can see a big slowdown in Indian economy by 2026. Indian economy has seen very good days in the last 10 years but slowdown is also natural after such good growth.
Can the Indian stock market see a big fall?
Yes, we can see the beginning of a downtrend in the Indian stock market in the coming months. Many market experts are not speaking about this on Indian news channels to avoid panic but the truth is that confidence in the Indian stock market is very low. A few months ago, many experts were talking about 30,000 levels in Nifty which seemed very difficult.
Can Nifty reach 18000 in 2026?
Yes, anything is possible in the stock market and any level can come. So investors and traders of the Indian stock market should keep themselves ready to see any level.
Which sectors can perform well till 2026?
Indian growth momentum will always remain intact because consumption theory is working best in India. But if recession and slowdown comes in India then all sectors are adversely affected, but still if someone wants to invest then they can focus on FMCG sector.
Which sectors' stocks should be avoided for 2026?
There are many sectors which will be affected by the slowdown, especially banking sectors, textile sectors, real estate sectors, infrastructure, and automobile sectors. Companies of IT sector are already in the grip of recession since last 1 year.
Conclusion
Indian economy has already slowed down and it may slow down in the coming days. It all depends on the acceptance of the government because no country accepts so quickly that the economy has slowed down during their tenure. We all should also forget that the slowdown in the economy is not due to the government of any country. Demand and supply always play a role and world economies also play the biggest role. If the Indian economy has seen such a big boost in the BJP government, then even if it has to see a slowdown due to world factors, no one should be so worried. The Indian government is taking very good decisions and in the coming time also we will keep seeing such good reforms. No world power can control our country and our country's government. India is and will remain a developed country.
Please do not enter any spam link in the comment box.