Overview

• India’s GDP grew by 6.5 percent in FY25 and is forecast to expand between 6.3 and 6.8 percent in FY26 with the RBI targeting 6.5 percent growth.
• The government plans significant increases in public capital expenditure following Prime Minister Modi’s directive to drive long-term development.
• FDI rules are being refined to create a friendlier, more attractive policy environment aimed at boosting overseas investment inflows.
• New Delhi has signed bilateral trade pacts with Australia, the UAE and the UK and is advancing negotiations with the United States and the European Union.
• India and China have initiated limited economic engagement with Sitharaman warning that any expansion must proceed cautiously under Press Note 3 guidelines.