India-EU FTA Talks Resume in Brussels

The 14th round of Free Trade Agreement (FTA) negotiations between India and the European Union commenced on October 6, 2025, in Brussels. The talks aim to resolve differences and finalize the agreement before the December 2025 deadline. Key sticking points include market access for automobiles, agricultural products, and the EU's Carbon Border Adjustment Mechanism (CBAM), which could impact Indian exports like steel and aluminum. The EU is pushing for India to reduce steep import duties on cars, which can reach up to 160% depending on vehicle size. India, in turn, seeks duty-free access for its labor-intensive imports and emerging sectors like auto and electronics. Despite challenges, both sides express optimism, with EU businesses showing increased interest in India's "Make in India" initiative and a survey indicating that over 6,000 European companies currently operate in India, employing more than three million people.

India-UK CETA Review and "Vision 2035"

Prime Minister Narendra Modi and UK Prime Minister Keir Starmer are scheduled to meet in Mumbai later this week to review the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 24. This review is a central pillar of the future India-UK economic partnership and will also involve discussions on the "Vision 2035," a 10-year roadmap for cooperation in trade, investment, technology, defense, climate, and education. The CETA is expected to provide duty-free access to the UK market for approximately 99% of Indian exports by value, benefiting sectors such as textiles, marine products, leather, gems and jewelry, engineering goods, and services. The agreement also includes favorable mobility provisions for skilled Indian professionals.

SBI's Ambitious Growth Target and India-EFTA Agreement

C.S. Setty, Chairman of the State Bank of India (SBI), announced the bank's aspiration to expand its asset size from the current 20% of India's GDP to 25% by 2047. This goal aligns with India's "Viksit Bharat" objective and positions SBI to potentially become one of the top 10-20 global banks by asset size. Meanwhile, the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (Tepa), effective October 1, includes binding commitments of $100 billion in investments and over one million jobs over the next 15 years. This agreement is seen as a significant boost for the 'Make in India' initiative and aims to increase India's investment rate to achieve its aspiration of becoming a high-income economy.

Indian IT Sector Faces Muted Growth; Other Economic Updates

The Indian IT outsourcing industry is projected to report a "status quo" July-September quarter, with analysts indicating little immediate turnaround due to restrained global technology spending. While a weakening rupee might cushion margins, discretionary IT spending remains subdued amidst concerns over potential US tariffs, inflation, and policy shifts. In other economic news, External Affairs Minister S. Jaishankar emphasized that any trade deal with the U.S. must respect India's "red lines" as efforts continue to find common ground. Additionally, Finance Minister Nirmala Sitharaman highlighted that financial assets worth ₹1.84 lakh crore are lying unclaimed with banks and regulators. Haryana Chief Minister Nayab Singh Saini has embarked on an official visit to Japan to strengthen economic and industrial ties, seeking investments and cooperation in technology and manufacturing.