New Delhi, Aug. 30 -- India's current economic outcomes are being shaped not purely by free-market forces but by a series of distortions. As per a report by Bernstein, company earnings, domestic consumption, and asset valuations are increasingly influenced by regulatory interventions, tax incentives, and substantial government transfers rather than underlying productivity gains.

The report noted that market observers frequently celebrate headline performance without accounting for structural offsets. An interconnected economy means that gains in one sector often stem directly from absorbed losses in another.

"As we reviewed commentary around the recent earnings season in India, there seemed to be far more enthusiasm for stripping out th...