India's economic and business sectors have been bustling with key announcements and developments over the last 24 hours, highlighting both robust growth projections and areas requiring strategic intervention.
Exports Poised for Significant Growth and Trade Deal Progress
Union Minister of Commerce and Industry, Mr. Piyush Goyal, expressed optimism regarding India's export performance, projecting a 6% growth in 2025. He stated that outbound shipments rose by 6.7% year-on-year to US$35.1 billion in August, contributing to a record US$824.9 billion in exports for FY25, a 6.01% increase from the previous year. Goyal also emphasized the advancement of free trade agreements (FTAs) with various countries, supported by rising domestic consumption. Negotiations with the European Union (EU), India's largest goods trading partner, have progressed, focusing on tariff reductions and enhanced market access for Indian products like textiles, pharmaceuticals, steel, and petroleum.
Meanwhile, Chief Economic Adviser (CEA) V. Ananth Nageswaran indicated that a resolution to India's tariff issues with the U.S. is likely within the next eight to ten weeks. These issues stem from additional 25% tariffs imposed by the U.S. on Indian products, bringing the total levy to 50%, particularly in response to India's purchases of Russian oil. Separately, the US Embassy in India announced the revocation and denial of visas for some Indian business executives over allegations of involvement in trafficking fentanyl precursors, adding another layer of complexity to US-India trade relations.
Call for Increased Corporate Investment and Stable GDP Growth
Financial Services Secretary M Nagaraju urged India Inc to scale up investments, stating that a fresh investment cycle is "vital" for the economy's current stage. He highlighted that corporates are well-positioned for investments due to "strongest balance sheets" and emphasized the financial sector's role in supporting these endeavors. Nagaraju noted the government's "heavy lifting" through spending and policy reforms, which have contributed to the Indian economy's "remarkable resilience." He pointed out that the economy recorded a five-quarter GDP growth of 7.8% for the April-June period and is on track to become the world's third-largest in the near future.
Chief Economic Adviser Dr. V Ananth Nageswaran reiterated expectations for India's GDP growth to remain stable, projecting the economy to reach US$5 trillion by 2027-28. He highlighted the high growth experienced by the MSME sector over the past six years and a positive contribution from agriculture to the GDP, though manufacturing growth has been slower.
Transformative GST Reforms on the Horizon
Chief Minister Yogi Adityanath announced that significant GST reforms, set to be implemented from September 22, are expected to boost the Indian economy by at least Rs 2 lakh crore and increase the country's GDP by 0.2 to 0.3%. The reforms simplify the earlier four-tier GST structure (5%, 12%, 18%, and 28%) to primarily two slabs: 5% and 18%, with a 40% rate continuing on select luxury items. This simplification aims to provide relief from inflation, strengthen trade, and simplify citizens' lives. Notably, GST on notebooks, pencils, and other educational materials has been fully abolished, as has GST on personal life and health insurance, while taxes on medicines, oxygen, and testing kits have been reduced. Conversely, taxes on harmful products like tobacco and pan masala have been raised to 40%.
Mixed Performance in Stock Markets and Corporate Updates
Indian stock markets saw an upward trend following the US Federal Reserve's decision to cut rates by 25 basis points, with the Sensex closing 320 points higher and the Nifty gaining 93 points. However, despite these recent gains, the Indian stock market has been branded as one of the world's worst performers in 2025, delivering a meager 1.9% return in US dollar terms compared to significant surges in other global indices. This underperformance is attributed to decelerating earnings growth, relatively expensive valuations, and persistent selling by Foreign Institutional Investors (FIIs).
In other corporate news, Oil India Limited's Chairman Ranjit Rath confirmed that the company's Russian assets and dividends remain unaffected by recent drone attacks on Russian oil refineries. Several companies announced significant business developments: Sheela Foam received NCLT approval for a merger, Vedanta was declared a preferred bidder for a Manganese block, Metropolis Healthcare acquired Ambika Pathology, and SEPC secured a major water project order worth Rs 4.4 billion. Additionally, KPI Green launched India's first Green Bond.