Abhishek Banerjee, the smallcase manager and Founder of Lotusdew Wealth, expects 2026 to be a better year for the Indian currency.

He believes the opening up of bond markets, increased weight of India in MSCI indices, less reliance on imports of oil, lower than expected inflation, better tax collection from fiscal receipts leading to lower current account deficit, and continued exports in areas like IT services and generic pharma, can take the rupee back to the 85 level in 2026.

Among sectors, he sees a significant opportunity, especially in precision manufacturing versus heavy manufacturing. "India is very environmentally conscious as a society, so bringing heavy manufacturing cost efficiency like China would be tough, but India can really outshine in precision manufacturing, engineered

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