India

India and Canada have formally commenced negotiations on a Comprehensive Economic Partnership Agreement, signaling a renewed push to deepen economic engagement between two major democracies. The proposed pact aims to expand trade in goods and services while addressing broader policy coordination across strategic sectors. Officials from both nations have articulated an ambition to elevate bilateral trade to Rs. 4.15 lakh crore (approximately $50 billion) by 2030.

India’s automobile retail market gathered significant momentum in February, with sales across major vehicle categories rising between 25% and 36% year on year, according to an analysis of Vahan registration data by Elara Securities. The surge was broad-based, encompassing two-wheelers, passenger vehicles, tractors and commercial vehicles. Notably, cumulative performance for FY26 has now shifted firmly into double-digit growth territory across all key segments.

India’s Goods and Services Tax (GST) collections rose 7.9 percent year-on-year in February, underscoring steady economic activity and continued compliance improvements. The growth reflects resilient domestic consumption, stable industrial output and sustained trade flows despite global headwinds. February’s uptick adds momentum to cumulative fiscal-year collections, strengthening the government’s revenue base and supporting expenditure commitments. Analysts view the expansion as a sign of formalization gains within the economy and enhanced digital tax administration.

India’s domestic aviation market recorded a 4.36 percent year-on-year increase in passenger traffic in January, reflecting sustained travel demand and improved route capacity management. The growth underscores the resilience of the sector amid fluctuating fuel prices and evolving fare dynamics. Airlines collectively carried millions of passengers during the month, supported by higher load factors and network expansion across tier-II and tier-III cities. 

India’s economy is projected to expand at 8.1% in the September–December quarter of 2026, according to recent economic forecasts. Analysts attribute this robust performance to sustained domestic consumption, improving investment flows, and a resilient services sector. Industrial output is also expected to contribute positively, supported by infrastructure projects and manufacturing activity. While global uncertainties and commodity price volatility pose potential risks, the forecast underscores India’s capacity for stable, high-growth momentum.

According to a recent report by ICRA, Indian airlines are expected to see a gradual reduction in operational losses in the near term, driven by improving passenger demand, cost optimization, and rising yields. The aviation sector, previously impacted by fuel volatility, high operating expenses, and pandemic-related disruptions, is now benefiting from stronger domestic travel growth and strategic capacity management. Analysts highlight that the industry’s recovery will hinge on prudent cost control, fuel hedging strategies, and maintaining competitive load factors.

The Indian rupee depreciated by 4 paise to Rs. 90.95 against the US dollar in early Friday trading, pressured by foreign institutional investor outflows and subdued domestic equity markets. Despite the downward move, losses were capped by a softer US dollar index and easing global crude oil prices, which provided partial relief to the local currency. The rupee had closed flat at Rs. 90.91 in the previous session, indicating a fragile equilibrium in the foreign exchange market.

Gold prices advanced sharply in futures trading on Friday, rising Rs. 890 to settle at Rs. 1,60,599 per 10 grams, supported by renewed speculative interest and firm demand in the physical market. The upward movement was observed on the Multi Commodity Exchange, where April delivery contracts recorded notable trading activity. Analysts attributed the gains to fresh long positions built by traders anticipating sustained strength in spot prices.

Directorate General of Civil Aviation has initiated the process to hire 38 consultants to mitigate staffing shortages and strengthen oversight functions in India’s rapidly expanding aviation sector. The move comes amid rising passenger traffic, fleet expansion and increased compliance requirements for airlines and airport operators. By onboarding domain specialists on a contractual basis, the regulator aims to enhance surveillance, air safety audits and technical certification processes.

India’s financial enforcement machinery intensified its scrutiny of high-profile corporate figures after the Enforcement Directorate provisionally attached a residential property linked to industrialist Anil Ambani. The action forms part of an ongoing investigation under anti-money laundering provisions and relates to alleged financial irregularities connected with corporate borrowings. Authorities indicated that the attachment aims to secure assets pending further adjudication.