NEW DELHI — India’s policy universe is changing fast with the government scrapping the final frontierspressured PressuringPressurised land mark trade deals and rolling out key provisions of the 2026 Union Budget, officials said and analysts said. So far, early signs point to fresh attention on trade, infrastructure and social support — as well as fiscal discipline — that would help long- term growth continue apace and reinforce India’s place in global markets.
India Pushes For FTA With US, EU
India announced major breakthroughs in trade deals with both the United States and the European Union that could change the landscape of its global economic engagements.
New Delhi and Washington are close to a trade deal that could eventually pave the way for signing of a more comprehensive bilateral pacts with lowering of tariffs on each other’s goods and negotiate improved market access for some services. Indian trade officials say an agreement could be reached as early as March 2026, establishing a more definite route map for commercial cooperation between the two countries.
At the same time, and heralded as a major achievement after almost 20 years of negotiations between India and European Union is Free Trade Agreement (FTA) which its implementation nears. The pact would remove tariffs on most traded items in the two markets and increase exports of Indian textiles, pharmaceuticals and engineering goods to Europe, they said.
Economists say the pacts are part of a pivot towards open market integration that could make India more competitive in global supply chains and bring in foreign direct investment into manufacturing and services.
Road Ahead on Union Budget and Regional Economic Priorities
India’s 2026 Union Budget remains at the heart of policy rollouts in infrastructure, healthcare or social development as presented by the finance ministry earlier this year.
Government ministers have called the budget a road map to a “developed India,” with emphasized funds for capital expenditure and targeted programs for empowerment of youth, rural development and women’s economic participation.
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India has spent only around 41% of the money it has budgeted on some major government programmes in the first nine months of the fiscal year, a recent fiscal report showed, as questions arise over implementation delays and preparedness of delivery systems at state level despite ambitious plans. Dissenters say that sluggish absorption of funds might be delaying the onset of tangible development-related results.
Booming Economy Analysts are seeing economic resilience
Experts from Financial and Economic analysts still have a cautious view of the pace of India’s growth. With inflation relatively tame and trade ties expanding, India’s economy — already one of the fastest-growing in the world among major economies — is likely to continue to expand at close to or above global averages, even as conditions outside the country remain uncertain.
Long-term competitiveness would rely on strategic moves like support to the semiconductor ecosystem, enhanced infrastructure spending accompanied by budgetary incentives and a fresh focus on fiscal reforms.
