{"id":85184,"date":"2025-11-26T00:00:00","date_gmt":"2025-11-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/sp-predicts-6-5-gdp-growth-in-india-in-fy26-india-eu-fta-in-january\/"},"modified":"2025-11-26T00:00:00","modified_gmt":"2025-11-26T00:00:00","slug":"sp-predicts-6-5-gdp-growth-in-india-in-fy26-india-eu-fta-in-january","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2025\/11\/26\/sp-predicts-6-5-gdp-growth-in-india-in-fy26-india-eu-fta-in-january\/","title":{"rendered":"S&P predicts 6.5 GDP growth in India in FY26 + India EU FTA in January"},"content":{"rendered":"

Good morning, friends and happy hump day. <\/strong>Fresh off the enactment of new labor laws, we have news this morning of the Modi government's legislative agenda, which is stacked with bills that could impact India\u2019s business environment. <\/p>\n

ALSO IN THIS MORNING\u2019S ISSUE-<\/strong> GDP forecast for 2Q and FY 2026. Niti Aayog<\/strong> wants a rethink on Chinese FDI restrictions. New Delhi prepares to seal a trade agreement with the European Union<\/strong>. <\/p>\n

ALSO- <\/strong>Downtown Dubai to welcome Sunteck Realty<\/strong>\u2019s luxury offering. ENBD and RBL<\/strong> officials discuss India\u2019s biggest banking M&A. TotalEnergies<\/strong> is looking to book profit on its Adani bid. Bharti Airtel\u2019s<\/strong> Africa subsidiary eyes listing in the UAE.<\/p>\n

^^ We have all of that and more, below.<\/p>\n

PSA- Whether you want to watch yourself or you\u2019re forced to by your spawn: It\u2019s nearly <\/strong>Stranger Things day. <\/strong>The first four episodes of what its producers are calling Volume 1 of the final season will drop on Netflix at 1am GMT on 27 November. Three more (Volume 2) drop on 25 December, and the finale will stream on 31 December. Each episode will be well north of an hour long. <\/p>\n

SIGN OF THE TIMES-<\/p>\n

Indian g<\/strong>overnment<\/strong> think tank Niti Aayog has advised the government to either <\/strong>remove or<\/a><\/strong>significantly relax<\/a><\/strong> restrictions on Chinese investment<\/strong>, signalling the first high-level rethink of the policy since its introduction in April 2020. Beijing imposed export controls on critical minerals as leverage<\/a> against Press Note 3 regulations, which mandate prior government approval for any investment from countries sharing a land border with India. The Press Note 3 virtually barred all Chinese investments in India following the 2020 border clashes between the two countries. <\/p>\n

Calibrated easing could help India integrate into global value chains<\/strong>, particularly for critical minerals, and lift exports, the think tank argued. The telecom, defense, space, and power sectors should remain off-limits for now on national security concerns, Niti Aayog suggests.<\/p>\n

The options:<\/strong> Revert to the pre-2020 regime or permitting investments where beneficial ownership is below 10%, alongside allowing up to 49% cumulative foreign holdings in non-strategic sectors under cabinet-level scrutiny. Niti Ayog has asked the Department for Promotion of Industry and Internal Trade to finalize a decision by 31 December.<\/p>\n

SOUND SMART- Niti Aayog isn\u2019t a group of independent policy wonks, but New Delhi\u2019s <\/strong>apex public policy think tank.<\/strong> Chaired by the prime minister, it replaced the Soviet-style Planning Commission in 2015 to drive \"cooperative federalism.\" It doesn\u2019t allocate funds, but acts as the state\u2019s strategic designer \u2014 formulating long-term economic frameworks, monitoring execution, and looking for ways to promote coordination between the Centre and the states.<\/p>\n

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WATCH THIS SPACE- <\/p>\n

<\/a> S&P Global is <\/strong>holding its FY2026 growth forecast<\/a><\/strong> at 6.5%<\/strong>, betting that robust government investment and a favorable monsoon will offset drag from US tariffs. The agency sees growth ticking up to 6.7% in FY2027 (ending March 2027). Both forecasts are unchanged from S&P\u2019s last Asia-Pacific outlook note. <\/p>\n