Indian equities yielded modest returns last year on relentless selling by foreign investors. Valuations were stretched to begin with, and time correction should align Indian market capitalisation with its impressive economic growth. Earnings are expected to revive with policy support aimed at slowing consumption, and uncertainty over exports could abate this year. The outlook will become clearer with the progress of tariff negotiations with the US and the effects of tax cuts on capacity utilisation. The growth-inflation trade-off will remain mild for a while, which should ensure persistence of low interest rates. Once foreign investors have visibility on earnings, they are likely to return. The principal risks are a delay in the US trade deal, a slow earnings recovery and the bursting of the AI bubble.

India's performance is relatively weak, headline indices have turned in low double-digit growth. Other markets have sprinted for a variety of reasons, including extremely concentrated bets on AI. These conditions could dissipate in 2026, which should improve the attractiveness of Indian equities. The rupee has adjusted significantly to the US tariff fallout and should stabilise this year, bringing back investor interest. Valuations are aligning with long-term averages at the beginning of the year, and should improve as the quarters unfold. The commodity cycle is favourable to healthier corporate margins.

Indian households will find equities compelling amid a strong rally in gold and real estate. Volumes are thinning in these asset classes at current elevated prices. The interest rate scenario does not favour deposit mobilisation by banks. Retail investors are undergoing behavioural shifts that encourage equity investment. A strong IPO pipeline is being bought into at valuations not endorsed by the secondary market. GST and income-tax cuts will facilitate the rebuilding of household financial savings, and some of this will find its way into equities this year. The markets will move beyond their 2024 peak at a steady pace. That is better than sharp sprints followed by deep corrections.

With the Supreme Court grappling with a backlog of more than 91,000 cases, CJI Surya Kant's embrace of the adage 'justice delayed is justice denied' - through action, not just words - is a welcome shift. From Jan 1, two administrative changes aimed at speeding up the court's work by allocating time to neglected cases and ensuring time-bound adjudication and closure came into effect.

Under the new rules, senior advocates, arguing counsel and advocates-on-record are required to provide the bench and opposing counsel with a timeline for oral arguments. This introduces a measure of time discipline that could curb the routine use of adjournments as a delaying tactic. The other change modifies the order in which cases are taken up for hearing, ensuring that different categories of litigants receive a fair share of the justices' time and injecting momentum into the docket. Four new priority categories - specially-abled persons and acid attack victims, senior citizens above 80, persons below the poverty line, and legal aid matters - will move cases that typically languish at the back of the queue closer to the front, giving them the attention they have long been denied.

Innocuous as they may seem, these administrative orders could disrupt a judicial culture long comfortable with delay, and a system often stacked against the vulnerable and marginal. They bring predictability to hearings, allow benches to plan time efficiently, and ensure that no single matter consumes judicial hours at the expense of others. By placing equity, fairness and timely justice at the heart of the judicial process, CJI aims to restore public trust in the court. With these steps, he has taken the first decisive move toward rebuilding public faith in India's highest court.

As India looks outward to sustain its growth momentum, Port City Colombo offers a strategic base that combines proximity, cost efficiency, and long-term fiscal incentives for cross-border expansion.

INDIA’S GROWTH ON THE GLOBAL STAGE

India’s rapid economic ascent is reshaping the global growth map. With GDP expansion projected at around 6.5% for 2025–26, a strong manufacturing push, and a booming technology and services sector, India’s trajectory toward becoming a US$30 trillion economy in the coming decades is well underway. Yet, sustaining this pace will require deep regional integration — particularly through trade, capital flows, and infrastructure linkages within the Indian Ocean region.

Against this backdrop, Sri Lanka’s Port City Colombo is emerging as a timely and strategic partner in India’s growth story. Positioned as South Asia’s next-generation business and lifestyle hub, Port City Colombo offers Indian enterprises an opportunity to scale their regional operations within a globally competitive regulatory environment just a short flight from India’s southern coast.

COLOMBO: STRATEGIC LOCATION AND REGULATORY EDGE

The city’s location is one of its strongest strategic assets. Situated along vital Indian Ocean shipping lanes and less than an hour’s flight from Chennai, it offers immediate connectivity to key Indian metros, while serving as a bridge between South Asia, the Middle East, and ASEAN markets. For Indian corporates expanding outward, Port City Colombo provides a geographically close yet internationally enabled base for trade, logistics, financial services, and innovation. Much like Singapore once became the financial nerve centre for Southeast Asia, Colombo has the potential to serve as the Indian Ocean’s equivalent gateway.

Beyond location, what truly differentiates Port City Colombo is its forward-looking regulatory and business framework. As Sri Lanka’s first multi-services Special Economic Zone (SEZ) governed by the Colombo Port City Economic Commission -- the government regulatory authority, it provides a transparent and investor-friendly environment with long-term tax incentives, a single-window clearance system, and the ability to transact in foreign currency. Businesses enjoy 100% foreign ownership, ease of capital repatriation, and regulatory structures benchmarked to international standards — critical factors for Indian firms operating in high-growth, cross-border sectors.

Setting up in Port City Colombo is designed to be seamless, with a simplified four-step process from application to license issuance. The SEZ also offers long-term residency options for professionals and investors, making it easier to establish operational continuity and attract global talent.

INVESTMENT SAFEGUARDS, TALENT, AND A MODERN ECOSYSTEM

The policies of this SEZ incorporate legal and contractual provisions, which provide investment safeguards and enable Indian investors to strengthen their business continuity, against any potential disruptions in the future. The International Alternative Dispute Resolution Centre (IADRC), established by the Colombo Port City Economic Commission in 2023, also facilitates the resolution of any commercial disputes within the area of authority of the Port City Colombo SEZ. Combined with a skilled, English-speaking workforce of over 150,000 professionals in technology, finance, and professional services, the city offers a competitive base for firms in FinTech, IT, education, logistics, and related industries. These facets add further weight to Port City Colombo’s value proposition.

Equally important, Port City Colombo is being developed as an integrated “live–work–play” environment, featuring modern residential, commercial, and leisure facilities built to global standards. For Indian investors and professionals, it combines proximity, familiarity, and quality — supported by international schools, healthcare, and connectivity. Why Invest in Port City Colombo?:

https://www.portcitycolombo.lk/investor-relations/why-invest-in-port-city-colombo/

A STRATEGIC BRIDGE FOR INDIAN ENTERPRISES

The India–Sri Lanka economic relationship is already robust, with bilateral trade exceeding US$5.4 billion in FY 2022–23. Indian investment plays a key role across Sri Lanka’s banking, telecommunications, energy, and manufacturing sectors. As India’s outward investments expand, Port City Colombo can serve as a regional headquarters location and offshore platform to manage South Asian and ASEAN portfolios efficiently.

In many ways, Port City Colombo represents a logical next step in the India–Sri Lanka economic partnership — a collaboration that leverages proximity, trust, and shared opportunity. For Indian developers, investors, and enterprises, it is not merely an offshore zone; it is a strategic bridge between India’s domestic strength and its regional aspirations.

In a rapidly integrating Indian Ocean economy, Port City Colombo offers India’s private sector a unique advantage: global access with regional proximity. As India’s growth story enters its next phase, Sri Lanka’s Port City Colombo stands ready to play its part — not as a competitor, but as a catalyst.

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