Trade and Tariffs
India's trade activities witnessed fluctuations. The US-Iran tariff situation caused uncertainty, while exports to China surged by 67% in December. Furthermore,
India-US exports experienced a downturn, totaling USD 6.88 billion in December. On the trade agreement front, India is nearing completion of a Free Trade Agreement (FTA) with the EU, and talks with Canada have resumed, according to the Commerce Secretary. The India-EU Free Trade Deal is anticipated at an upcoming summit. Smartphone exports experienced a significant rise, surging by 43.7% to reach $18.8 billion. The government is also looking into EV duty structure corrections, and the oil industry has proposed the abolition of the OID cess in its budget wishlist.
Market Performance & Investment
The financial markets saw varied performances. Silver and gold prices reached record highs in Delhi. India's real estate investments increased by 68% to $3.73 billion. Major corporate actions included the NSE IPO receiving Sebi's settlement agreement, and a significant rise in Godrej Properties sales, up by 55% to reach Rs 8,421 crore. 360 ONE WAM profit jumped 20% to Rs 331 crore, while Emmvee Power's Q3 profit tripled to Rs 264 crore. However, Angel One's Q3 profit dropped by 4.5% to Rs 269 crore, and HDFC Life's Q3 profit was flat at Rs 418 crore. Jio Financial Services reported a 9% drop in Q3 profit, and LTTS's Q3 profit declined by 6% to Rs 302 crore.
Sectoral Developments
Several sectors displayed significant activity. The power sector in India shows a $500 billion investment potential. NTPC Green Energy and GAIL are collaborating on renewable energy projects. NBC Bearings entered the drone tech space by investing in Ahamani. The IIJS Bharat Signature 2026 event anticipates business worth Rs 75,000 crore. There were also developments in the aviation sector, with an Air India A350 engine sustaining damage at Delhi Airport, and a preliminary report was released regarding an MP trainer aircraft crash. The automobile sector is looking into revamping the PLI scheme and adopting green mobility. Nuvoco Vistas reported a Q3 profit of Rs 49.37 crore.
Corporate & Policy
Corporate entities and government policies had substantial impacts. Mondelez India saw a 2% decrease in FY25 revenue, reaching Rs 12,503 crore. IHCL acquired a stake in Brij Hotels for Rs 193 crore. A report indicated that higher education may not be industry-ready, and a survey suggested that compliance issues hinder manufacturing growth. The NITI Aayog is working on MSME scheme convergence for efficiency. The Haryana budget for 2026-27 is focused on farmers and agriculture. The UP excise policy for 2026-27 aims for a distillery boost. AIBOC demanded enhanced security for staff in SIR. The Finance Ministry upheld the tradition of budget printing at North Block. Moody's upgraded the outlook for Adani Transmission & Electricity.
Other Key Trends
Additional developments included India Post delivering its first ONDC order. The markets were closed for Makar Sankranti. The pilots' body, FIP, served notice to AAIB concerning a plane crash. There was a ruling by the Supreme Court on Tiger Global, affecting tax implications for foreign investors. The unemployment rate rose to 4.8% in December. Furthermore, a paper by EAC-PM examined public transport and household liquidity. The Milma and NDDB launched a food testing lab in Kochi. A recent report revealed that there were 3.3 lakh deaths in two-wheeler accidents between 2019 and 2023. Additionally, an Indian firm secured an anti-drone system order, and Suraksha Realty was booked for fund diversion.
