Sakshi Batra anchors this market report on the India-European Union Free Trade Agreement (FTA). This pact encompasses a 2-billion-person market representing 25% of global GDP. The agreement aims to increase Indian exports in textiles, gems, jewellery, IT, and petroleum. A specific provision includes reducing import duties on European luxury vehicles, such as Mercedes, BMW, and Audi, from 110% to 10%. The program also details the partnership between Adani Defence and Brazil’s Embraer to assemble commercial aircraft in India, establishing a regional manufacturing hub. Regarding the Union Budget 2026, former RBI Governor D Subbarao addresses policy fatigue and the Viksit Bharat roadmap, advocating for simplified capital gains and withholding tax norms to attract foreign investment. Market analyst Sharmila Joshi evaluates the impact on the Indian SUV market and notes that the agri and dairy sectors remain excluded from the current FTA terms. This bulletin provides a factual overview of these economic developments and their implications for the private aerospace and automotive sectors.
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