India on Track to Become Third-Largest Economy Amidst Strong Growth Drivers
India is charting a definitive course towards becoming the world's third-largest economy by 2040, with projections suggesting its GDP could surpass $10 trillion. This ambitious growth trajectory is underpinned by what experts term the "4 Ds": Development, Diversification, Digitalisation, and Decarbonisation. Finance Minister Nirmala Sitharaman has also affirmed India's steady progress, attributing it to robust economic expansion and ongoing structural reforms.
Manufacturing Sector Sustains Strong Momentum in October
The Indian manufacturing sector continued its impressive performance in October 2025, with the Manufacturing Purchasing Managers' Index (PMI) rising to 59.2, up from 57.7 in September. This substantial expansion is primarily driven by strong domestic demand, coupled with the positive impact of Goods and Services Tax (GST) relief measures, enhanced productivity, and increased technological adoption across industries.
India Advances Free Trade Agreement Talks with New Zealand
Union Minister of Commerce and Industry, Piyush Goyal, is currently in New Zealand to review the ongoing negotiations for a Free Trade Agreement (FTA) between the two nations. During these discussions, India has reiterated its commitment to safeguarding the interests of sensitive domestic sectors, particularly dairy and Micro, Small, and Medium Enterprises (MSMEs). The talks aim to foster a balanced and comprehensive economic partnership, exploring new avenues for collaboration in various sectors.
Reforms Underway for Special Economic Zones to Boost Exports and Domestic Access
A government panel is actively working on new regulations for Special Economic Zones (SEZs) to enable exporters to access the domestic market more effectively. This initiative is particularly crucial for units affected by US tariffs. Furthermore, significant amendments to SEZ rules in June 2025 have already been introduced, notably reducing land requirements for semiconductor and electronics manufacturing SEZs and introducing operational flexibilities to attract greater investment and enhance competitiveness.
Morgan Stanley Projects Sensex to Reach 100,000 by June 2026
In a bullish outlook, Morgan Stanley has predicted that India's benchmark Sensex index could hit the 100,000 mark by June 2026. This optimistic forecast is based on the assessment that the market correction phase has concluded, and India's growth cycle is set to accelerate. Factors contributing to this positive sentiment include anticipated rate cuts by the Reserve Bank of India (RBI), easing banking regulations, and improved international trade relations.
BFSI Sector Witnesses Remarkable Growth
India's Banking, Financial Services, and Insurance (BFSI) sector has experienced extraordinary growth, with its market capitalization surging over 50 times to reach Rs 91 trillion by 2025. This expansion is largely driven by the increasing financialization of savings and robust regulatory reforms within the sector.