Back to today’s briefing

Story perspectives

India's Budget 2026: Growth Projections and EU Trade Deal

2/5/2026

36 6 Full Breakdown

Summary

Story summary

Nirmala Sitharaman, India's Union Finance Minister, presented the Union Budget for FY26 on February 1, the first Sunday presentation.
The Economic Survey projects GDP growth of 6.8%–7.2% for FY26 and a 4.4% FY25 deficit.
India signed a Free Trade Agreement with the European Union, resulting in preferential access for over 99% of exports and access to 102 sub-sectors.
The deal follows rising U.S. tariffs on Indian imports amid geopolitical tensions.

History

Historical Context

In 2023, India signed a Free Trade Agreement with the European Union, allowing preferential access for over 99% of exports. This agreement followed rising U.S. tariffs, which increased by 25% on certain goods in 2018. With a projected GDP growth of 6.8%–7.2% for FY26, this deal underscores India's strategic efforts to enhance its global market position amid geopolitical challenges.

1 of 2

Story summary

Nirmala Sitharaman, India's Union Finance Minister, presented the Union Budget for FY26 on February 1, the first Sunday presentation.
The Economic Survey projects GDP growth of 6.8%–7.2% for FY26 and a 4.4% FY25 deficit.
India signed a Free Trade Agreement with the European Union, resulting in preferential access for over 99% of exports and access to 102 sub-sectors.
The deal follows rising U.S. tariffs on Indian imports amid geopolitical tensions.

1 / 2