Economy

Finance Minister Nirmala Sitharaman has emphasized the urgent need for India to develop world-class banking institutions capable of supporting the nation’s ambitions to become a global economic powerhouse. Addressing industry leaders and financial experts, she underscored that robust, technologically advanced, and well-capitalized banks are vital for sustaining India’s high-growth trajectory.

India’s major bank unions have intensified their opposition to the central government’s ongoing push for privatization in the banking sector, warning that such moves could undermine financial stability, job security, and inclusive growth. The unions argue that public sector banks (PSBs) remain the backbone of India’s economy, especially in extending credit to priority sectors and supporting rural development.

India and Australia are advancing negotiations toward a comprehensive trade agreement aimed at deepening bilateral economic cooperation and expanding market access across goods and services. Building on the foundation of the Economic Cooperation and Trade Agreement (ECTA) signed in 2022, both nations are now working toward a broader Comprehensive Economic Cooperation Agreement (CECA).

India’s economy is projected to expand at a rate exceeding 6.8% in FY26, according to Chief Economic Adviser (CEA) V. Anantha Nageswaran. Buoyed by robust domestic consumption, structural tax reforms, and a resilient services sector, the revised forecast marks a notable improvement over earlier estimates of 6.3%–6.8%. The CEA attributed this optimistic outlook to sustained economic momentum, stronger private investment, and the positive impact of income tax relief and GST rationalisation.

India’s residential real estate market continues its upward momentum, with housing prices rising between 7% and 19% across the top eight metropolitan cities in the July–September 2025 quarter, according to property consultancy PropTiger. The surge reflects strong end-user demand, limited new supply, and sustained confidence in the country’s urban housing markets.

Amid mounting global trade barriers, India’s steel industry is shifting focus from bulk commodity exports to higher-value, processed steel products to maintain market access and profitability. Facing steep duties from major markets such as the United States and potential curbs from the European Union, Indian producers are accelerating the export of value-added and finished steel goods that attract lower tariff rates.

Finance Minister Nirmala Sitharaman reaffirmed India’s strong economic trajectory, stating that the nation is poised to emerge as the world’s third-largest economy in the coming years. Speaking at a recent event, Sitharaman emphasized India’s resilience amid global uncertainties and underscored the government’s commitment to sustaining growth through fiscal prudence, infrastructure expansion, and digital innovation.

The 2025–26 sugarcane crushing season has officially commenced in Uttar Pradesh, India’s largest sugar-producing state. Mills across the region have started operations, marking the beginning of an economically significant cycle for farmers and the sugar industry alike. Early indications suggest a promising crop yield, supported by favorable weather conditions and improved cane acreage. However, industry experts caution that rising input costs and fluctuating sugar prices may temper profit margins.

India’s Commerce and Industry Minister, Piyush Goyal, is in New Zealand to review progress on ongoing Free Trade Agreement (FTA) discussions aimed at strengthening bilateral trade and economic cooperation. The visit underscores both nations’ intent to deepen commercial engagement across key sectors such as agriculture, services, technology, and manufacturing. While New Zealand is eager to expand market access for its dairy and agricultural products, India remains cautious, prioritising protections for its farmers and micro, small, and medium enterprises (MSMEs).

India’s automobile sector continues to experience robust momentum, with sport utility vehicles (SUVs) emerging as the primary growth driver in the passenger vehicle (PV) market. According to a senior Hyundai Motor India executive, the SUV segment now accounts for the lion’s share of overall PV sales, reflecting evolving consumer preferences, higher disposable incomes, and the growing appeal of premium features.