2026: A Horizon of Hope
While 2025 was marked with volatility and caution, the inherent optimism of Indians show hopes for a better 2026. The beginning of 2025 was marked by a “not so positive” outlook for the year (Outlook Among Indians 2025: A Mixed Bag of Hope and Concerns), and consumer sentiments remained volatile throughout the year (Volatile Times and the need for Resilience). Would this new year bring better tidings for the economy and consumer? Recent data from the Ipsos Predictions 2026 Report reflects a significant rise in optimism among Indians as they look towards 2026.
As the graph below shows, consumer sentiment fluctuated over 2025 and remained consistently lower than in 2024. While sentiment began to weaken in mid-2024, it continued to decline significantly through 2025. Despite the festive period and the impact of GST reforms providing a modest boost in October and November 2025, the year ended with generally subdued consumer confidence. This indicates consumers' hesitance and cautious spending, likely influenced by broader economic conditions and uncertainty.
Now, as we turn the calendar year, 85% Indians are optimistic that 2026 will be a better year for them than 2025 was, up 9pp since last year. And 81% believe in 2026, Indians will start to feel more optimistic about the future, up 8pp since last year.
If this potential upturn in consumer sentiment is sustained, this optimism could translate into increased consumer spending and investment confidence, positively impacting economic growth.
When compared with the global average (30 countries covered in the Ipsos Predictions 2026 Report), India’s optimism is also reflected in the expectation that things will turn around this year, which is higher than in most other countries.
India stands among the few high-ranking countries that believe that 2025 was not so great, but things will be better next year.
India on Top Among 30 Countries on Optimism
So, is it time to loosen the purse strings?
Businesses have the potential to capitalise on the expected positive shift, and keeping a check on consumer sentiment, understanding sectoral trends, anticipating changes, and adapting swiftly will be critical, as always. A strategic focus on agility and responsiveness will be key as businesses navigate the return of consumer confidence and optimism.
