India's economic landscape continues to exhibit strong momentum, with various reports and official statements highlighting positive growth trajectories and strategic international engagements. The State Bank of India (SBI) Research has projected a robust Gross Domestic Product (GDP) growth of 7.5% or more for the second quarter of the current fiscal year (FY26). This optimistic outlook is primarily attributed to a surge in festive season sales and the positive impact of recent Goods and Services Tax (GST) rate rationalization. Other institutions, including the Reserve Bank of India (RBI) and ICRA, have also provided positive, albeit slightly varied, forecasts, with RBI projecting 7% and ICRA also predicting 7% for the same quarter.
Adding to the nation's economic aspirations, Commerce and Industry Minister Piyush Goyal announced that India is on the cusp of becoming the world's third-largest economy, aiming to achieve this milestone by 2027. India has already surpassed Japan to become the fourth-largest economy earlier this year, underscoring its rapid economic ascent. Prime Minister Narendra Modi further reinforced this sentiment, stating that India's nearly 7% GDP growth positions it as a global model of resilience and development amidst various global challenges.
International Trade and Business Relations
In a significant push for international trade, a senior government official indicated that the initial phase of a trade deal between India and the United States is "more or less near closure." This agreement is expected to address existing trade tensions and reciprocal tariffs, fostering a more favorable trade environment between the two nations. Furthermore, India is strengthening its ties with Israel, with a historic business delegation, led by Minister Piyush Goyal, currently visiting Tel Aviv. Comprising over 100 representatives from leading Indian companies across diverse sectors like high-tech, pharma, and automotive, this delegation aims to deepen economic cooperation, promote investment, and advance negotiations for a potential free trade agreement. India is already Israel's second-largest trading partner in Asia.
Government Initiatives and Policy Support
The government is actively implementing policies to bolster domestic manufacturing and streamline trade. A new unified trade intelligence portal has been launched by Piyush Goyal, designed to provide real-time analytics on Free Trade Agreement (FTA) utilization, global market trends, and export opportunities. In the manufacturing sector, 17 projects have been approved under the electronics component manufacturing scheme, signaling significant investment and projected production growth. Amidst challenges from US tariffs, the Union Cabinet has also approved a substantial 6-year, Rs 25,000 crore export mission to support Indian exporters.
Economic Indicators and Market Performance
Key economic indicators remain under close observation. The unemployment rate in October remained stable at 5.2%. GST collections are showing strong signs, with an SBI report estimating that the November mop-up could exceed ā¹2 lakh crore, propelled by festive demand and enhanced compliance. On the stock market front, Indian benchmark indices, Sensex and Nifty, experienced a dip on November 18, 2025, trading in red with the Nifty below 25,950. Despite this, market observers anticipate a sustained upward trend, citing improving economic fundamentals and the potential positive impact of the impending US trade deal.