NEW DELHI, Jan 29: India's economy is projected to grow 7.4% in FY26 and 6.8-7.2% in FY27, driven by regulatory reforms, a strong macroeconomic base, and a renewed call for private sector investment, according to the Economic Survey 2025-26.

The survey, tabled in Parliament by finance minister Nirmala Sitharaman and authored by chief economic adviser V. Anantha Nageswaran, outlines how India plans to navigate a turbulent global economy, including tighter US tariffs and uncertainty around AI-led growth.

For the current fiscal, the 7.4% forecast aligns with the IMF's 7.3% and World Bank's 7.2% projections. FY27 growth is expected to moderate slightly, with the two multilateral bodies estimating 6.4% and 6.5% respectively.

The Economic Survey warns that a worst-case global scenario, driven by AI could trigger a systemic shock with consequences "worse than the 2008 global financial crisis," posing a direct threat to India's IT-driven white-collar job engine.

This low-probability but high-impact scenario, assigned a 10-20% chance by the Survey, envisions a cascading failure where technological overreach, geopolitical escalation, and financial stress collide.

The Survey flags a specific vulnerability in the AI-heavy infrastructure sector, where business models rely on long-duration capital, narrow customer bases, and ambitious timelines.

India-EU Trade Pact Finally Sealed

NEW DELHI, Jan 27: The India-EU free trade agreement – which European Commission President Ursula von der Leyen called "the mother of all trade deals" – has been sealed, Prime Minister Narendra Modi said Tuesday afternoon after European Council President Antonio Costa and the PM signed a declaration to that effect.

In a post-signing statement on X the PM said two of the world's biggest democratic trading blocs – with trade valued at 180 billion Euros – had "sealed the biggest FTA in our history". The PM said, "We have taken a lot of decisions that will help people… the India-EU trade deal is a blueprint for mutual growth."

He also noted an estimated eight lakh Indians living in the EU will benefit greatly.

"Today, India has concluded the largest Free Trade Agreement in its history. Today is January 27 and it is a happy coincidence that, on this day, India is signing this FTA with 27 countries of the European Union. This is not just a trade agreement... it is a new blueprint for shared prosperity," the PM said.

"The cooperation between India and the EU is a partnership for the global good."

Costa said India and the EU "stand together as strategic and reliable partners… and we are taking our partnership to the next level, to shape a resilient global order that enables peace and stability".

"India is the fastest growing economy and today's FTA is of historic importance (for Europe)," he said, noting it creates an overall market of just under two billion people. Costa, however, also outlined the EU's future hopes from this partnership, including a focus on green energy.

Today marks a historic moment as we open a new chapter in EU-India relations - on trade, security, and people-to-people ties.

Our Summit sends a clear message: in a reshaping global order, the EU and India stand together as strategic, reliable partners.

"Dear PM, we can count on you for creating conditions for peace, dialogue and together we must show leadership on global issues," he said, calling for greater cooperation in areas such as combating climate change and the transition from fossil fuels to green and renewable energy.

Costa, who also holds an Overseas Citizen of India card, declared himself "proud" of his Indian roots and said the India-EU trade deal reflects the "shared vision of India and Europe".

Von der Leyen, who joined Costa as the chief guest for Republic Day celebrations in Delhi, spoke again about India's growth being needed for a more secure world. "India has risen and Europe is truly glad about it," she said, "When India succeeds, world is more secure and we all benefit."

"We did it... we delivered the ‘mother of all deals'. It is a tale of two giants," she said.

Earlier the PM called the FTA, which he noted is around 25 per cent of global GDP, a 'remarkable example of cooperation between the world's two largest economies' and emphasised the positive outcome for several domestic sectors, including textiles, gems and jewellery, and leather goods.

The accord reached this morning marked a major breakthrough in talks that had dragged on for nearly two decades; negotiations were first launched in 2007 and dropped in 2016 over a till-then unresolved roadblock – primarily over access to India's agricultural and dairy goods market – halted progress.

Talks were resumed in 2022 – amid concerns over global supply chains being affected by the post-COVID era and Russia's war on Ukraine – and accelerated last year as Donald Trump's tariffs hit.

The FTA will lower tariffs on most consumer and industrial goods traded between India and EU members, although it is expected to exclude some agricultural products. In exchange, the EU will also get enhanced market access for its automobile exports, subject to a cap.

From Defence To Worker Mobility, India-EU Free Trade Deal Creates History

NEW DELHI, Jan 27: India and the European Union (EU) have announced a historic, mega free-trade agreement (FTA) today that has been called the "mother of all deals" by EU chief Ursula von der Leyen.

The FTA is expected to bring a qualitative change in deepening the overall bilateral ties in a range of sectors. The broad focus of today's meeting was on trade, defence and security, climate change, critical technologies and strengthening the rules-based global order.

The two sides also unveiled a defence framework pact and a strategic agenda. The new partnership comes at a time when Europe is seeking to reduce its dependence on the US and China, and deepen its diplomatic and economic ties to other regions.

Prime Minister Narendra Modi hosted European Commission President Ursula von der Leyen and European Council President Antonio Costa at the summit. Costa and von der Leyen graced the 77th Republic Day celebrations at the Kartavya Path as chief guests.

India and the European Union have been strategic partners since 2004. The proposed Security and Defence Partnership (SDP) will facilitate deeper defence and security cooperation between the two sides.

The SDP will bring interoperability in the defence domain and will open up avenues for Indian firms to participate in the EU's SAFE (Security Action for Europe) programme. SAFE is the EU's 150 billion euro financial instrument designed to provide financial support to member states to speed up defence readiness.

The EU and India had first launched negotiations for the free-trade agreement in 2007, before the talks were suspended in 2013 due to a gap in ambition. The negotiations were relaunched in June 2022.

A memorandum of understanding on facilitating the mobility of Indian workers to Europe is expected to be another key outcome of the summit. It will provide a framework for advancing mobility initiatives by EU member states with India. France, Germany and Italy are among the European nations that have migration and mobility partnerships with India.
They are likely to deliberate on pressing global challenges, including the Russia-Ukraine war. While the two sides don't see eye-to-eye on everything, they do share a core set of interests which include having a stable international order.

The ties between India and the EU have been on an upswing over the last few years. The EU, as a bloc, is India's largest trading partner in goods. For the financial year 2024-25, India's total trade in goods with the EU was worth about $136 billion, with exports around $76 billion and imports at $60 billion.

India-EU trade deal finalised, says commerce secy; to take effect next year

NEW DELHI, Jan 26: India and the European Union (EU) have successfully concluded negotiations for the proposed Free Trade Agreement, commerce secretary Rajesh Agrawal said on Monday. He said the deal, to be announced formally on January 27, is “balanced and forward-looking,” which will help improve India's economic integration with the EU.

“The deal will come into force sometime next year. Legal scrubbing of the text will take 5-6 months; formal signing will be done post that,” Agrawal was quoted as saying.

“Negotiations have been successfully concluded. The deal has been finalised. It will propel trade and investments in both economies,” he added.

European Council President Antonio Costa and European Commission President Ursula von der Leyen are in New Delhi on Monday as chief guests for the 77th Republic Day and to participate in the 16th India-EU Summit.

Prime Minister Narendra Modi said India is privileged to host the leaders, adding that the presence of the EU delegation underscores the growing strength of their partnership. In a post on X, the commission said, "Our partnership is built on a shared goal to tackle the world's greatest challenges. As we look forward to tomorrow's EU-India Summit, we are ready to take our next step together."

European Union Trade Commissioner Marcos Sefcovic said the long-awaited agreement could significantly open the Indian market to European firms. In an interview with Euro News ahead of the high-level EU-India summit, Sefcovic also described the pact as the "mother of all deals", using Ursula von der Leyen's words.

He noted that negotiators are "checking their final numbers" as the European bloc pushes to reduce India's steep import duties, which can reach up to 150% in some sectors.

According to Sefcovic, the agreement would create a free trade area encompassing roughly 2 billion people and lift many Indian customs duties on European goods, although sensitive sectors will be excluded to focus on “the positive outcome”.

"This is the largest trade deal ever," he said, highlighting that around 6,000 European companies already operate in India; and trade between the two partners has surged significantly over the past decade.

Brussels views the deal as a strategic move to diversify its trade ties beyond the United States and China, while Indian officials have signalled willingness to open markets to foreign investment and goods in key areas.

Vice-President of the European Commission, Kaja Kallas, also signalled strong momentum in EU-India relations spanning trade, security and defence cooperation. She said in a post on X that the EU is seizing the opportunity to deepen ties. She noted that personnel from EU naval operations Atalanta and Aspides participated in India's Republic Day parade for the first time.

India to grow 6.5% in FY27; World Bank pegs FY26 growth at 7.2%

WASHINGTON, Jan 14: India’s economy is expected to grow 6.5 percent in FY27, easing from an estimated 7.2 percent in the current fiscal, the World Bank said on January 13, underlining that resilient domestic demand will continue to anchor growth even as external headwinds intensify.

In its latest Global Economic Prospects report, the multilateral lender noted that the impact of higher US tariffs on Indian exports is likely to be cushioned by stronger-than-anticipated momentum in domestic demand.

“Despite higher tariffs on certain exports to the United States, the growth forecast has remained unchanged relative to June projections, primarily because the adverse impacts of higher tariffs will be offset by stronger momentum in domestic demand than previously anticipated,” the World Bank said.

The institution upgraded its estimate for the current fiscal year by a sharp 0.9 percentage points to 7.2 percent, reflecting India’s strong performance in the first half of the year. Robust private consumption, aided by earlier tax reforms and improving real incomes—particularly in rural areas—has been a key driver of this upgrade.

“In India, growth is estimated to increase to 7.2 percent in FY2025–26, mainly reflecting robust domestic demand, including strong private consumption, supported by earlier tax reforms and improvements in real household earnings in rural areas,” the report noted.

Looking ahead, the World Bank expects growth to moderate slightly. For FY27, it projects expansion of about 6.6 percent, marginally lower than its earlier estimate of 6.7 percent. The medium-term outlook, however, remains constructive, with services activity expected to stay strong alongside a gradual recovery in exports and a pickup in investment.

“Growth is set to inch up to 6.6 percent in FY2027–28, underpinned by robust services activity, as well as a recovery in exports and a pickup in investment,” the report said.

Globally, growth is expected to remain subdued. The World Bank forecasts world output to slow to 2.6 percent in 2026 from 2.7 percent in 2025. Emerging market and developing economies are projected to grow 4 percent, down from 4.2 percent, while advanced economies are expected to see growth ease to 1.6 percent.

Among major economies, the US is expected to grow slightly faster at 2.2 percent, up from an earlier estimate of 2.1 percent, while China’s growth is projected to slow to 4.4 percent from 4.9 percent.

Anil Agarwal's Son Dies Of Cardiac Arrest After Skiing Accident

NEW YORK, Jan 7: Vedanta Group Chairman Anil Agarwal's son Agnivesh died after a cardiac arrest on Wednesday at the age of 49.

The tycoon shared the news on his official X account, stating, "Following a skiing accident in the US, he was recovering well in Mount Sinai Hospital, New York. We believed the worst was behind us. But fate had other plans, and a sudden cardiac arrest snatched our son away from us."

"Agnivesh was many things - a sportsman, a musician, a leader. He studied at Mayo College, Ajmer, went on to set up one of the finest companies Fujeirah Gold, became Chairman of Hindustan Zinc, and earned the respect of colleagues and friends alike. Yet, beyond all titles and achievements, he remained simple, warm, and deeply human," he said.

Anil Agarwal said he had promised his son that more than 75% of their income would be given back to society.

"We shared a dream to ensure that no child sleeps hungry, no child is denied education, every woman stands on her own feet, and every young Indian has meaningful work. I had promised Agni that more than 75% of what we earn would be given back to society. Today, I renew that promise and resolve to live an even simpler life," he said.

Agarwal has two children: his late son, Agnivesh, and a daughter, Priya, who is on the board of Vedanta Ltd. and chairperson of Hindustan Zinc Ltd.