- India continues to remain ahead in global markets. What gives you the most confidence about the medium to long-term equity opportunity in India?
Offering a rare trifecta of strong growth, manageable inflation and policy stability, India continues to distinguish itself on the global stage. The Foundation supports a highly optimistic outlook for corporate earnings in the medium to long term. The Union Budget 2026 further reinforced this sentiment, signaling a strategic pivot towards long-term economic capacity building over momentary market incentives.
The macro environment is set for improvement, with GDP growth, fiscal deficit and tax regime remaining stable. As earnings trickle down, FY27 is poised to be a breakout year. India’s structural story is currently driven by a powerful mix: a revival in capital expenditure, resilient discretionary spending, and a manufacturing sector supported by significant policy headwinds. Furthermore, consumption is expected to pick up pace in the coming months, driven by the delayed effects of the 2025 income tax and GST cuts, low interest rates post the RBI’s 2025 easing cycle and the ongoing GST rationalization. This development reflects a decade-long transformation where rising per capita income is driving fundamental changes in lifestyle and spending patterns in both urban and rural India.
- Income growth remains resilient across sectors. Where do you see the strongest structural momentum over the next few years?
After a period of consolidation, the Nifty-50 index is poised for a significant earnings acceleration. After an estimated single-digit growth in FY26, we expect net profit to grow by double-digit growth in FY27 and FY28. This constructive outlook is based on a significant rebound in nominal GDP growth, which is expected to rise from around 8% in FY2026 to 10% in FY27.
This reform is based on the “twin engine” of development. Domestically, consumption is rising due to lower income tax and GST rates, including historic rationalization in September 2025 and RBI rate cuts throughout CY2025. Externally, the export landscape has changed with the recent conclusion of the India-US Interim Trade Framework and the landmark India-EU Free Trade Agreement. Earnings trend may improve from 2HFY26 and into FY27, as the pace of downgrades is likely to subside due to significant disruptions already in the base. We are particularly excited about megatrends such as energy transition, capital goods, defense, data centers, Internet, discretionary spending and financialization of savings. These sectors are riding on strong policy headwinds and structural momentum.
- With innovation-led topics like manufacturing, digitalization and premium consumption gaining momentum, what long-term trends are you most excited about?
The global economy is undergoing its most profound transformation since the Industrial Revolution. The world is moving from labour-mediated globalization to technology-first, localized precision; From mass consumption to premium, personalized consumption; And from traditional manufacturing to AI-augmented, automated production systems.
- Advanced Manufacturing: Supported by global supply-chain diversification, India is emerging as a preferred hub for electronics, semiconductors and precision engineering.
- Digitization and AI: India now has 958 million active internet users, the majority of whom are in rural India, demonstrating a huge market ripe for digital services, AI adoption and e-commerce expansion.
- Premium consumption: Rising incomes, changing urban lifestyle and aspirational spending are driving premiumisation across auto, fashion, beauty, travel and electronics.
- Data and cloud infrastructure: 21.7 billion transactions processed with UPI alone ₹With a value of Rs 28.33 lakh crore in January 2026, India’s Digital Rail displays unprecedented scale and readiness for further monetization in fintech, retail and logistics.
As these innovation-driven themes—manufacturing, digitalization, technology and premium consumption—come together, several long-term trends stand out as particularly transformative.
- The markets have rewarded quality and disciplined capital allocation. How does your investment philosophy help identify sustainable compounders?
Our investment philosophy prioritizes: a strong framework, discipline through cycles, and patience and a process-based disposition. In bull markets, several frameworks seem to be effective; True differentiation emerges during times of instability. A strong framework helps identify: sustainable competitive advantage, high governance standards, sensible capital allocation and valuation discipline. A well-designed framework systematically minimizes errors and focuses on quality at a fair price – key characteristics for multi-decade compounders.
- On technology fund NFO, what is the strategic rationale for launching it?
Technology today is not a tool; This is the environment in which we live. It powers every interaction – how we learn, travel, communicate, transact, shop, work and manage our well-being. For businesses, technology has moved from a support layer to the main engine of competitiveness. Cloud computing, AI, data analytics and digital infrastructure now drive value creation in every industry.
LIC MF Technology Fund invests in the rapidly evolving digital ecosystem, deriving growth from multiple innovation-based sectors. it focuses on Main Technology Companies Which creates the software, hardware, and platforms that power modern life. The fund also contributes to the expansion Internet and digital ecosystemWhere increasing connectivity and smartphone penetration is driving new user behaviour. Funds benefit from boom as data becomes the new infrastructure Data Center and Support ServicesWhich supports cloud computing, AI and high-traffic digital operations. Additionally, it takes advantage of the rapid growth E-commerce and instant commerce Places, where convenience, speed and digital payments are reshaping consumer habits. Together, these segments form the backbone of the digital economy, providing long-term structural growth opportunities for investors.
These are not subjects; Those are the fundamental economic changes that will dominate wealth creation over the next decade.
- How does this launch align with India’s growing digital and innovation ecosystem, and what long-term opportunities does it open up for investors?
India is operating digital rail on a scale unmatched globally. Everyday life – wake-up alarm, commute, payments, work calls, entertainment, shopping run on seamlessly integrated digital systems.
This is not a trend; This is a structural change.
- UPI processed transactions worth Rs 21.7 billion ₹28.33 lakh crore in January 2026, demonstrating mainstream, nationwide adoption across income and geography sectors.
- India’s internet user base to cross 950 million in 2025, with rural India accounting for 57% of users – expanding digital consumption far beyond metros.
- Average data usage of 36GB+ per month reflects deep engagement with digital services (streaming, payments, commerce, entertainment).
Meanwhile, India’s IT and software ecosystem remains a natural partner for global digital transformation—cloud migration, cyber security, AI enablement and data engineering supported by strong export resilience.
- How will AI impact Indian IT services, and are Indian companies ready for this change?
Recent volatility in Indian IT stocks has been driven by concerns that AI could disrupt traditional outsourcing models. However, this reflects a misunderstanding of the infection pathway.
AI is unlikely replace the enterprise software or IT services; instead:
- there is a possibility embedded in software platformExpanding automation capabilities.
- Vendors will offer AI-augmented workflows, improving productivity and expanding TAM.
- Complete software replacement by AI is only possible in “narrow, non-deterministic tasks”, not in mission-critical enterprise systems.
AI will do change shapeNo eraseIT services and Indian IT companies are already repositioning themselves for this change through investments in GenAI, automation platforms and domain-specific AI solutions.
Source: pib.gov.indigipay.gov.in
LIC MF Technology Fund
An open-ended equity scheme investing in technology and technology-related companies
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