Indian Earnings Outlook Drops 1.2% — Asia’s Worst Hit in 2025

- India’s corporate profit forecast sees steepest decline in Asia, falling 1.2% in 12-month projections. - Bank of America survey: India drops from most-favored to least-preferred Asian equity market. On August 21, 2025, Cryptopolitan reported, citing data from LSEG IBES and Reuters, that India’s corporate profit outlook has taken a sharp dive. Analysts slashed 12-month forward earnings projections by 1.2%, the steepest drop in Asia, as looming U.S. tariffs threaten key export sectors. Potential U.S. tariffs, which could reach up to 50%, are creating significant economic pressure. This pressure comes at a critical time, as India's corporate earnings growth has already stagnated. For five consecutive quarters, corporate profits have remained in the single digits, which underscores a broader slowdown in the country’s economic momentum. As a result, this mounting pressure has also triggered a dramatic shift in investor sentiment. A Bank of America fund manager survey, cited by Cryptopolitan, shows that India has fallen from the most-favored to the least-preferred equity market in Asia in just two months. To counter these economic headwinds, the Indian government has rolled out tax reforms to boost domestic consumption. Economists from Standard Chartered estimate these fiscal measures could add between 0.35 and 0.45 percentage points to GDP in the fiscal year ending March 2027, offering some much-needed support amid the challenges.