This week’s news in numbers includes the conclusion of the “mother of all agreements” between India and the EU, India’s decline to sixth position on Mint’s developing market tracker, the 2026 Padma Awards honoring technological and artistic sectors, and the Budget losing its ability to move markets.
India–EU Free Trade Agreement
Negotiations for a historic free trade agreement (FTA), known as the “mother of all accords,” between India and the European Union came to an end. India now has more access to one of the most integrated economic partnerships in the world thanks to the agreement.
Following implementation, the EU will remove levies on around 97–98% of Indian imports, while India will lower tariffs to zero on approximately 96% of EU exports. Sectors including textiles and clothing, leather and footwear, marine goods, and gems and jewelry are anticipated to profit as the EU is almost as large a market as the US for Indian exporters.
Buffer Against US Tariffs
The EU accord provides a buffer against the present pressure from US tariffs on key export industries, but its implementation may take up to a year.
Emerging Market Tracker & Mint EM Ranking
On Mint’s developing market tracker, India’s ranking dropped to sixth position in December, its worst showing since February 2025. In 2025, the nation only held the top spot for five months, compared to eight in 2024.
India’s composite score dropped to 49.7 out of 100 in December due to poor stock market and currency performance that overshadowed robust GDP growth and industrial activity. With a 1.8% monthly decline in market capitalization, equity markets took the most hit. Another drawback was the rupee’s 1.4% decline vs the US currency. Additionally, as favorable base effects diminished, export momentum slowed to 1.9% year over year from 19.4% in November.
China Tops the List
China topped the list as backed by relatively constant export growth, solid import cover and a more stable currency compared with rivals.
Padma Awards 2026
In this year’s Padma Awards list, the government honored 131 people in a variety of areas. With 44 honorees, the arts dominated the accolades, followed by literature and education with 18. Almost half of all recipients fell into these two groups combined.
Since 1954, the arts have prevailed overall, making up 24% of all Padma awards in dance, music, and film. Social work, medicine, literature, and education come next. Just 5.4% goes toward public affairs, which mostly identifies judicial or political officials.
Focus on Technology & Medicine
The 2026 list reflects changing national objectives. Growing acknowledgment of technological professions alongside traditional cultural accomplishments is evident in the fact that science and engineering achieved their best totals in 12 years, while medicine recorded its highest totals in 10.
📈 EU-India Trade Boost & Industrial Growth
- FTA Impact: EU removes levies on ~98% Indian imports
- Indian Tariffs: Zero on ~96% EU exports
- Key Sectors: Textiles, leather, marine goods, gems & jewelry
- Industrial Effect: Supports growth in manufacturing & IIP
- Timeline: Implementation may take up to 1 year
- Strategic Benefit: Reduces pressure from US tariffs
🗺️ Adventure Tourism & Budget Support
- Budget Proposal: ₹500 crore for tourism initiatives
- Adventure Tourism: New source of funding for governments
- Objective: Promote safe and sustainable tourism in India
- Sector Boost: Encourages local businesses & travel operators
- Economic Benefit: Supports GDP growth and employment
Economic Survey 2026 & GDP Prediction
The Economic Survey predicted on Thursday that India’s GDP will increase by 6.8–7.2% in 2026–2027. Despite being less than the 7.4% increase predicted for FY26, the poll pointed out that it showed consistent growth in the face of global uncertainties.
The one-time payment Larsen & Toubro Ltd. (L&T) paid to adhere to India’s new labor laws is ₹1,191 crore. As a consequence, L&T’s consolidated earnings decreased by 4% year over year to ₹3,215 crore.
Airline Crew Rest Regulations
According to the Hindustan Times, a number of local airlines, who together transport 95% of air travelers, are pleading with the government to loosen the crew rest regulations that went into force on November 1.
Nvidia Investment in AI
$2 billion According to Bloomberg, Nvidia Corp. has increased its investment in CoreWeave Inc. in order to accelerate efforts to create more than 5GW of AI processing capacity by 2030.
Industrial Production & IIP Growth December
In December, India’s industrial output increased by 7.8%, the largest gain in more than two years. This excellent result came after the previous month’s 7.2% rise, which was fueled by Christmas demand and reductions in the goods and services tax (GST) rate.
The data shows widespread momentum across industries. Despite slightly declining from 8.5% in November, the manufacturing sector maintained its robust expansion, growing 8.1% year over year in December. While power generation recovered sharply with 6.3% growth, matching the growth rate from the previous year after declining 1.5% in November, mining production increased to 6.8% in December from 5.8% growth in November.
Union Budget Impact on Markets
Once the largest policy trigger for Indian stock markets, the Union Budget is becoming less and less of an event. According to a Mint research, Budget Day has not significantly affected markets over the last three years.
In 2023, the Sensex gained 0.4% on Budget Day; in 2024, it gained 0.6%; and in 2025, it remained flat. This subdued response is indicative of a more profound change in which policymaking has become more consistent and ongoing, allowing markets to plan ahead weeks in advance.
Movements during the pre-Budget period are becoming more pronounced. The Sensex dropped 5.4% in the 15 days leading up to the 2018 Budget before rising 4% that day. In 2021, it gained just 0.25% on Budget Day and fell 2.3% in the last two weeks.
Frequently Asked Questions
1. What makes the FTA between India and the EU so significant?
Because it provides access to one of the biggest markets in the world at almost zero tariffs and helps important export industries that are under pressure from other areas.
2. What caused India’s rating to drop in the Emerging Market Tracker?
Because of the bad performance of the equities market, the devaluation of the rupee, and the sluggish growth of exports in spite of the manufacturing and GDP figures.
3. Which categories dominated the 2026 Padma Awards?
Literature and education came in second on the list, but science, engineering, and medicine had their highest representation in years.
4. Does the Economic Survey indicate that India’s growth is slowing?
Given the instability of the world economy, growth is expected to be 6.8–7.2%, a modest decrease from the previous year but still robust.
5. Why does Budget Day no longer have a significant impact on markets?
Investors modify their holdings prior to the announcement of the budget since changes and policy signals increasingly occur throughout the year.
Conclusion
In addition to market downturn and a lower EM rating, this week’s figures paint a mixed but fundamentally robust image of India, including a historic EU trade agreement, strong industrial development, and growing recognition for research and medical.
The overall message is that while India’s economy is still strong, financial markets are starting to price growth and policy more carefully and strategically.
Disclaimer: This content is for informational purposes only and is based on publicly available reports and estimates. It does not constitute financial, investment, or policy advice. Readers should verify details independently before making any decisions.
