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India and the Russia-led Eurasian Economic Union (EAEU) are set to resume negotiations for a proposed free trade agreement (FTA) by the end of February 2026, following the Indian Budget session. New Delhi is prioritizing the removal of numerous non-tariff barriers (NTBs) that hinder Indian exporters, particularly concerning differing standards and language requirements. Russian President Vladimir Putin emphasized the importance of the FTA in facilitating trade and reducing barriers during his recent visit to India. Currently, India faces a significant trade deficit with Russia, with exports at $4.9 billion and imports at $63.8 billion in FY25. The first round of negotiations took place in November 2025, with an 18-month work plan established to enhance market access for Indian businesses, including small and medium enterprises, farmers, and fishermen. Russia remains India's primary trading partner within the EAEU, which also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan. 
Published: Dec 31 2025, 7 pmeznews.inThe Indian government's Production Linked Incentive (PLI) scheme for the automotive sector has made significant progress, with investments totaling ₹35,657 crore and cumulative incentives of ₹2,321.94 crore disbursed as of December 31, 2025, according to the Ministry of Heavy Industries (MHI). The initiative has also created nearly 49,000 jobs. The PLI scheme promotes products with a domestic value addition of at least 50%, with eight applicants in the champion original equipment manufacturer (OEM) category and ten in the component champion category receiving DVA certification for various electric vehicle models. Notably, incentives have been allocated for over a million electric two-wheelers, three-wheelers, four-wheelers, and buses. In the first performance year of FY 2023-24, ₹322 crore was disbursed to four companies, while for FY 2024-25, ₹1,999.94 crore has been allocated to five approved applicants, including major players like Tata Motors and Mahindra & Mahindra.
Published: Dec 31 2025, 8 pmeznews.inIn the first four months of the 2025-26 sugar season, India’s sugar release quota has reached 88 lakh tonnes, marking a 4.3% decline compared to the same period last year. The government has allocated 22 lakh tonnes for domestic sales in January, a decrease of 2.2% from 22.5 lakh tonnes in January 2025, amid lower demand and sales, which have dropped by approximately 50,000 tonnes compared to October-November 2024. Karnataka's sugar factories face an 18% reduction in their sales quota, while Uttar Pradesh and Maharashtra have seen increases. Mills are allowed to swap domestic quotas for export quotas, with Karnataka's Sameerwadi sugar factory surrendering over 12,000 tonnes for this purpose. Overall, India’s sugar production is projected to rise to 343 lakh tonnes, up from less than 300 lakh tonnes last season, despite a reduction in the ethanol quota from 35 lakh tonnes to 29 lakh tonnes.
Published: Dec 31 2025, 8 pmeznews.inIndia is negotiating a free trade agreement (FTA) with the EU, focusing on securing exemptions from the upcoming Carbon Border Adjustment Mechanism (CBAM), which will impose carbon taxes on imports starting January 1, 2026. This mechanism aims to ensure that imported goods, including steel and aluminium, carry a carbon price equivalent to that of EU-produced items, potentially forcing Indian exporters to reduce prices by 15-22% to remain competitive. The CBAM will require independent verification of emissions data, adding administrative burdens for Indian micro, small, and medium enterprises (MSMEs). New Delhi is urging Brussels to consider these challenges in FTA discussions, particularly regarding CBAM and the EU Deforestation Regulations. Both parties aim to finalize the FTA before the visit of EU leaders for India's Republic Day celebrations on January 26, 2026, coinciding with the India-EU Summit.
Published: Dec 31 2025, 8 pmeznews.inKanishka Sethia, Whole Time Director and CEO of Western Carriers, announced the company's ambitious plans to expand its logistics operations following the recent launch of a multi-modal cargo terminal in Halvad, Gujarat. The terminal, which began operations three months ago, is expected to reach full capacity within a year, currently handling 8-10 rakes monthly, with potential to triple that volume. Spanning over 30 acres, the facility facilitates transportation to major cities including Bengaluru, Delhi NCR, and Kolkata. Sethia reported a significant 25.39% quarter-on-quarter increase in domestic cargo volume, while the EXIM sector showed signs of recovery despite geopolitical challenges. Looking ahead, Western Carriers aims to establish at least four additional logistics hubs across India over the next four to six years, with a capital expenditure plan of ₹400 crore. The strategic expansion reflects the growing importance of last-mile delivery innovations in the logistics sector.
Published: Dec 31 2025, 8 pmeznews.inFrom January 1, 2025, car and two-wheeler prices in India are set to rise due to escalating input costs and macroeconomic challenges, including the high cost of precious metals and ongoing foreign exchange issues. Hyundai Motor India announced a modest price increase of approximately 0.6% across its models, while JSW MG Motor India and Renault India will implement hikes of up to 2%. In the luxury segment, Mercedes-Benz India cited persistent currency volatility, with the euro consistently trading above ₹100, as a key factor for its price adjustment. The company has attempted to shield customers from the full impact of these costs. Additionally, BMW Motorrad India plans to raise prices by up to 6%, while Triumph Motorcycles will discontinue discounts on models over 350 cc. These adjustments reflect the broader economic pressures affecting the automotive industry.
Published: Dec 31 2025, 8 pmeznews.inIn a recent announcement, the Finance Ministry confirmed that interest rates for various small savings schemes will remain unchanged for the January-March quarter of FY26, marking the eighth consecutive quarter without adjustments. The Sukanya Samriddhi Scheme will continue to offer an interest rate of 8.2%, while three-year term deposits will maintain a rate of 7.1%. The Kisan Vikas Patra will yield 7.5% with a maturity period of 115 months, and the National Savings Certificate (NSC) will remain at 7.7%. Additionally, the Public Provident Fund (PPF) and post office savings deposits will retain their rates at 7.1% and 4%, respectively. These small savings schemes, primarily managed by post offices and banks, provide government-backed guarantees on principal and interest, ensuring stability for investors amid fluctuating market conditions.
Published: Dec 31 2025, 8 pmeznews.inRanen Banerjee, Partner and Economic Advisory Leader at PwC India, has outlined significant risks and expectations for India's economic growth in FY26 and FY27. He identifies growing trade protectionism, escalating geopolitical conflicts, and climate change as major threats to economic stability. Banerjee emphasizes the need for key policy initiatives, including incentivizing states to improve land and labor conditions, enhancing youth employability through skill development, and ensuring tax policy certainty to attract investments. He anticipates important budget announcements, such as public-private partnerships for MSME infrastructure, tax relief for sectors impacted by trade barriers, and increased funding for research and development, particularly in AI. Despite potential tax revenue shortfalls, Banerjee believes the government will meet its fiscal deficit targets, aided by higher dividends from the RBI and public sector units, alongside reduced revenue expenditures due to lower spending on various schemes.
Published: Dec 31 2025, 5 pmeznews.inThe calendar year 2025 was marked by significant economic developments in India, beginning with the Union Budget for FY26, which introduced a major income tax reform, exempting annual incomes up to ₹12.75 lakh from taxes. This budget also initiated a long-awaited GST rate rationalisation, effective from September 22, establishing a two-tier rate structure of 5% and 18%, alongside a special 40% slab. However, the imposition of a 50% tariff by the US on Indian exports, particularly affecting the gems, jewellery, and textiles sectors, created challenges, contributing to a record low for the Indian rupee at 91.38 against the dollar. Despite these hurdles, India’s economy showed resilience, with GDP growth exceeding 7% in three consecutive quarters, prompting upward revisions in growth forecasts. The recent upgrade of India’s sovereign rating by S&P Global to ‘BBB’ is expected to enhance foreign investment and support sustained growth, projected at 7.5% for FY27.
Published: Dec 31 2025, 6 pmeznews.inThe Indian government has introduced a fresh price-based safeguard duty on steel, ranging from 11% to 12% over three years, aimed at stabilising domestic prices and protecting the industry from import competition amid weak global demand. The duty will start at 12% until April 2026, decreasing to 11.5% in the second year and 11% in the third. A price exemption mechanism will apply, allowing imports priced below $675 per tonne for hot-rolled coils and $824 for cold-rolled coils to avoid the duty. Domestic hot-rolled coil (HRC) prices have fallen from ₹52,850 per tonne in April to ₹46,000 in November, reflecting ongoing supply pressures. Experts, including ICRA's Sumit Jhunjhunwala, view the duty as a necessary measure to shield the domestic steel sector from global market distortions, although concerns remain that a significant drop in Chinese prices could undermine its effectiveness.
Published: Dec 31 2025, 6 pm
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