India's economy continues to demonstrate robust performance and strategic advancements, with key indicators pointing towards sustained growth and a strengthening financial sector. Chief Economic Advisor (CEA) V Anantha Nageswaran expressed confidence that India's economic growth for the current financial year (FY26) will exceed 6.8%, driven by increased consumption due to GST rate cuts and income tax relief. He suggested that the growth could even approach 7% after the release of second-quarter numbers, reaffirming India's position as the fastest-growing major economy globally.
Financial Sector Reforms and Resilience
The World Bank's Financial Sector Assessment (FSA) report highlighted the resilience of India's financial sector, attributing it to ongoing reforms. These reforms include expanded regulatory oversight for cooperative banks, tightened prudential norms, and reorganized supervisory functions. The report emphasized that maintaining the pace of these reforms is crucial for India to achieve its goal of becoming a $30 trillion economy by 2047. Complementing this, RBI Governor Sanjay Malhotra underscored the vital role of larger and more resilient banks in driving reforms, noting that the central bank is lifting various restrictions to allow banks greater participation in capital market activities and acquisition financing.
Expanding Global Trade Footprint
India is actively expanding its economic ties internationally. The country recently concluded the 9th round of trade agreement talks with Peru and the 3rd Comprehensive Economic Partnership Agreement (CEPA) round with Chile. These negotiations aim to deepen trade in services, critical minerals, pharmaceuticals, textiles, food processing, and automobiles, signifying a strategic effort to diversify India's trade corridors. Furthermore, NITI Aayog CEO BVR Subrahmanyam anticipates positive developments regarding India's proposed Bilateral Trade Agreement (BTA) with the United States by the end of November. India and the European Union have also concluded a week-long discussion on a comprehensive free trade agreement, signaling further global integration efforts.
National Manufacturing Mission and Housing Market Outlook
In a significant push for domestic production, the National Manufacturing Mission is set to be operational by the end of November, as announced by NITI Aayog CEO BVR Subrahmanyam. This initiative aims to elevate the manufacturing sector's contribution to India's GDP from the current 15-17% to 25%. Concurrently, India's housing market is projected to experience a 5-10% annual price increase over the next few years. A report by the Confederation of Indian Industry (CII) and Colliers attributes this growth to strong demand driven by a burgeoning working-age population, rapid urbanization, and rising incomes. Residential demand is forecast to reach 500,000 units annually by 2030 and potentially double to one million units by 2047.
Key Business Highlights and Market Performance
Several major Indian companies reported their Q2 FY26 results, showcasing strong financial performance:
- Bajaj Auto witnessed a significant 53% year-on-year surge in consolidated Profit After Tax (PAT) to ā¹2,122 crore, with revenue increasing by 19%.
- Torrent Pharma's net profit jumped by 30% to ā¹591 crore.
- Nalco's profit rose by 37% to ā¹1,430 crore.
- Trent recorded an 11% year-on-year increase in profit to ā¹377 crore, with revenue up by 16%.
- Nykaa's consolidated PAT skyrocketed by 243% year-on-year to ā¹34 crore, alongside a 25% jump in revenue.
- Apollo Hospitals Enterprises reported a net profit of ā¹494 crore (up 24.8%) and revenue of ā¹6,303.5 crore (up 12.8%).
- Bajaj Housing Finance's profit surged by 17.8% to ā¹643 crore, with revenue increasing by 14.3% to ā¹2,755 crore.
In market news, the State Bank of India (SBI) joined the elite club of companies with a USD 100 billion valuation, becoming the sixth Indian entity to achieve this milestone. SBI's total business reached Rs.100.12 trillion as of September 2025, and its Q2 FY26 net profit saw a 10% year-on-year rise to Rs.20,160 crores. Additionally, Swiggy's board approved a substantial fundraise of up to ā¹10,000 crore through a Qualified Institutional Placement (QIP).
On November 7, 2025, Indian equity markets concluded lower for the third consecutive session, with the Sensex closing 0.11% down at 83,216.28 and the Nifty ending 0.07% lower at 25,492.3. Broader markets displayed mixed trends. Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,263.21 crore on November 5, 2025, while Domestic Institutional Investors (DIIs) provided support by buying equities worth Rs 5,283.91 crore on the same day.