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The upcoming Union Budget is set to prioritize capital expenditure (capex) as part of the government's ongoing commitment to public investment, despite a constrained fiscal environment, according to a report by HSBC Mutual Fund. With an allocation of ₹11.21 lakh crore (3.1% of GDP) for 2025-26, the focus will remain on sustaining economic growth through infrastructure spending. The report suggests that significant changes to tax policy are unlikely, given the limited policy levers available. Key areas for targeted allocations may include defence, agriculture, and technology, with continued support for manufacturing and exports anticipated. The government is expected to maintain transfers to states and utilize long-dated, interest-free loans to bolster regional development. Overall, the budget is expected to reflect policy continuity and fiscal discipline, with the Union Budget for 2026-27 scheduled for presentation in Parliament on February 1, 2026. 
Published: Jan 25 2026, 1 pmeznews.inThe upcoming India-EU free trade agreement, set to be announced on January 27, is expected to enhance trade and reduce costs rather than pose a threat to domestic industries, according to the Global Trade Research Initiative (GTRI). The think tank highlighted the complementary nature of the two economies, with India focusing on labour-intensive goods and the EU providing advanced technology and capital goods. GTRI founder Ajay Srivastava noted that tariff reductions would primarily benefit producers and consumers by lowering input costs and fostering deeper value-chain integration. In FY2025, India-EU goods trade surpassed $136 billion, with India importing high-end machinery, electronics, and medical devices essential for its industrial sectors. Conversely, Indian exports, including smartphones and pharmaceuticals, largely substitute EU imports from other countries. The report also indicated that the alcohol trade remains minimal, with India importing significantly more premium spirits from the EU than it exports.
Published: Jan 25 2026, 2 pmeznews.inIndia and the European Union are poised to announce the conclusion of negotiations for a significant free trade agreement (FTA) on January 27, following 18 years of discussions that began in 2007. Commerce and Industry Minister Piyush Goyal has hailed the FTA as the "mother of all deals" for India. The announcement will occur during the India-EU Summit, attended by European Commission President Ursula von der Leyen and European Council President Antonio Costa. While the agreement will be finalized after legal vetting, its implementation will require approval from the EU Parliament and India's Union Cabinet. The FTA aims to eliminate or reduce tariffs on over 90% of goods traded, enhancing market access for sectors like textiles and automobiles while protecting sensitive agricultural products. With the EU accounting for 17% of India's exports, the deal is expected to help Indian exporters diversify and reduce reliance on China amid global trade disruptions caused by US tariffs.
Published: Jan 25 2026, 2 pmeznews.inPiyush Arora, MD and CEO of Skoda Auto Volkswagen India, has highlighted the need for policy continuity, infrastructure development, and a robust electric vehicle (EV) ecosystem in the upcoming Union Budget to sustain growth in the automotive sector. In a recent interview, he emphasized the positive impact of last year's GST reforms on the domestic passenger vehicle industry and called for customs reforms and bilateral trade agreements to enhance global integration. Arora noted that the India-EU free trade agreement could benefit brands under the Volkswagen umbrella, while the group's strategy focuses on localizing production for both domestic and export markets. He revealed that Skoda sold a record one million cars globally last year, with India emerging as a key market. Looking ahead, Arora anticipates a 5-6% growth in the passenger vehicle market by 2026 and stressed the importance of addressing challenges in EV adoption, including price parity and charging infrastructure.
Published: Jan 25 2026, 11 ameznews.inVedanta's iron ore mining subsidiary, Sesa Goa, has called on the Indian government to implement incentives for the beneficiation of low-grade iron ore, highlighting the need for targeted policy support and infrastructure investment to enhance economic viability. The beneficiation process improves the iron content of low-quality ores, making them suitable for steel production, which is crucial as India's steel demand is expected to reach 300 million tonnes by 2030. Currently, while higher-grade ore meets domestic needs, significant low-grade reserves remain untapped due to high upfront costs and regulatory hurdles. Sesa Goa CEO Navin Jaju emphasized the urgency for a beneficial duty structure and argued against export duties on low-grade ore, advocating for free pricing to stimulate growth. With India's iron ore production reaching 289 million tonnes in FY25, the company seeks a time-bound framework in the upcoming Union Budget to unlock the potential of low-grade reserves, transforming them into a strategic asset for the nation.
Published: Jan 25 2026, 11 ameznews.inUnion Shipping Minister Sarbananda Sonowal announced on Saturday that India's maritime sector is set to attract investments exceeding ₹80 lakh crore in the coming years, aiming to restore the country's historical nautical dominance. Speaking at the inauguration of the second phase of Vizhinjam port's development, Sonowal highlighted that investments in the sector, which reached over ₹12 lakh crore in 2025, are expected to create 1.5 crore jobs. He emphasized that the completed Vizhinjam port will become a significant regional transshipment hub. Under Prime Minister Narendra Modi's leadership, the maritime sector has seen substantial growth, including increased shipyards and cargo movement. Sonowal noted that Kerala is pivotal in this transformation, with 56 Sagarmala projects underway, totaling over ₹24,000 crore, enhancing trade and empowering coastal communities. He expressed confidence that the maritime ecosystem in Kerala will bolster India's position in the global supply chain.
Published: Jan 25 2026, 10 ameznews.inThe Cotton Textiles Export Promotion Council has underscored the necessity of securing a favourable trade deal for Indian cotton textiles in the European Union (EU) markets, where current tariff barriers hinder competitiveness against countries with preferential access. Chairman Vijay Agarwal highlighted that India's annual exports of over $1.3 billion could significantly benefit from a zero-duty regime, bolstering MSME exporters and promoting sustainable growth. As negotiations near completion, the textile industry looks to Prime Minister Narendra Modi for support in achieving a level playing field. At the recent Heimtextil Show in Frankfurt, Indian exporters expressed optimism about the impending India-EU trade agreement, which could unlock new growth opportunities. A Sakthivel, Chairman of the Apparel Export Promotion Council, noted that as competing nations lose preferential access, India stands poised to enhance its market position, aiming for an ambitious target of $40 billion in apparel exports by 2030.
Published: Jan 25 2026, 10 ameznews.inIn a significant market update, India's benchmark indices faced declines, with the SENSEX dropping by 769.67 points to close at 81,537.70, while the NIFTY fell by 241.25 points to settle at 25,048.65. In contrast, crude oil prices rose by 182.00 to reach 5,622.00, while gold prices decreased by 386.00 to 155,955.00. Silver, however, saw a notable increase of 7,611.00, bringing its price to 334,900.00. Meanwhile, the Seafood Exporters Association of India (SEAI) has called on the government to eliminate duties on seafood exports to the European Union and remove non-trade barriers to enhance market access. SEAI President G. Pawan Kumar emphasized that such measures would support market diversification and bolster India's seafood exports, which have already surged by 28% in quantity and 37.8% in value over the past year, following the EU's approval of 102 new fishery units.
Published: Jan 25 2026, 9 ameznews.inAs India gears up for Union Budget 2026, the agricultural sector, which contributes 17.8% to the national GDP and employs over 46% of the workforce, faces critical challenges that necessitate comprehensive reform. Despite decades of policy efforts, issues like low productivity, inefficient water use, and fragmented landholdings persist. Incremental measures have proven insufficient, prompting calls for a shift from consumption-based subsidies to performance-driven incentives that enhance productivity and sustainability. Key reforms should include digitised land records to clarify ownership, technology-enabled supply chains to reduce post-harvest losses, and an integrated approach to water, soil, and climate management. Furthermore, establishing stable, long-term policies is essential for fostering global competitiveness. The success of Budget 2026 hinges on a unified reform strategy that addresses these interconnected issues, aiming for a transformative reset in Indian agriculture to secure farmer livelihoods and bolster food security.
Published: Jan 25 2026, 10 ameznews.inIndia's agriculture sector is undergoing a significant transformation through the nationwide implementation of the Digital Agriculture Mission, with AgriStack at its core. This national Digital Public Infrastructure aims to provide seamless access to entitlements and services for all farmers, regardless of their land size or documentation. AgriStack comprises three key registries: a Farmer Registry for authenticated identities, Geo-Referenced Village Maps for accurate land mapping, and a Crop Sown Registry for detailed crop records. This system enhances governance by replacing fragmented processes with real-time verification, ensuring that benefits like Direct Benefit Transfers and insurance claims reach the right recipients efficiently. Notably, during the 2025 Maharashtra floods, AgriStack facilitated rapid relief disbursement to over 61 lakh farmers. The initiative also combats fraud in procurement and fertilizer distribution, while integrating non-land owning farmers into the system, ultimately aiming for a cohesive, data-driven agricultural ecosystem that supports all cultivators.
Published: Jan 25 2026, 9 am
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