India

Hindu Business Line | English | News | Jan. 23, 2026 | UndeterminedBizdev-Partnering

Indian space-tech start-ups are increasingly securing international customers, marking a shift from a domestic-focused ecosystem to one driven by global demand. Enhanced credibility through ISRO, improved cost competitiveness, and established flight heritage are helping these companies expand into markets such as the US, Europe, Japan, Singapore, and Australia. Manastu Space now earns about 40% of its revenue from overseas, targeting government defence orders via direct and potential OEM partnerships.

Dhruva Space, although currently dependent mostly on the domestic market, anticipates rapid international growth, with customers in France, Austria, Australia, and the Middle East. Its exports, including space-grade solar panels and ground station services, may rise to 40% of its order backlog in the near future. These export opportunities not only boost sales but also diversify risk and improve the quality of order books. Investors note that firms serving both domestic and international clients, such as Pixxel, enjoy higher valuation premiums due to market and technical risk reduction.

Digantara Industries is gaining international recognition as a credible global supplier, especially in defence and intelligence sectors requiring sovereign technologies. The company is expanding its global footprint with a US presence and plans for a European entity by 2026 to support both classified and commercial programs, while maintaining core engineering in India. PierSight is experiencing growing overseas demand driven by its unique SAR+AIS-based ocean surveillance solutions, with the fastest growth in the Middle East and Southeast Asia. The firm expects exports to surpass domestic revenue as global demand for persistent maritime monitoring increases.

Livemint | English | News | Jan. 23, 2026 | UndeterminedPolitics and Elections

European Commission President Ursula von der Leyen will be the Chief Guest for India's 77th Republic Day, visiting India from January 25 to 27, 2026. Alongside António Luís Santos da Costa, President of the European Council, she will co-chair the 16th India-EU summit. On January 27, von der Leyen will hold restricted talks with Prime Minister Narendra Modi focusing on a long-anticipated Free Trade Agreement (FTA), and both will meet President Droupadi Murmu. The India-EU FTA negotiations aim to enhance trade despite recent global tariff challenges, with hopes of signing the agreement soon. The EU is currently India's largest trading partner.

Ursula von der Leyen, a German politician and doctor, assumed office as European Commission President in 2019 and was re-elected in July 2024. She previously served 14 years in the German government, including as Federal Minister for Defence under Angela Merkel. A member of the centre-right Christian Democratic Union, she was born in Brussels and grew up bilingual. Her family background includes a father who was a CEO and state politician in Germany. She married Heiko von der Leyen in 1986.

Speaking at the 2026 World Economic Forum in Davos, von der Leyen described the upcoming India-EU trade agreement as “the mother of all deals,” potentially creating a market of 2 billion people and accounting for nearly a quarter of the global GDP. The FTA negotiations, which had been stalled since 2013, are expected to significantly deepen economic ties between India and the 27-nation European Union.

Hindu Business Line | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

In 2025, India experienced a rare "Goldilocks" phase characterized by moderate and resilient economic growth alongside subdued inflation, supported by stable macroeconomic fundamentals despite global volatility. The Reserve Bank of India’s cumulative 125 basis points repo rate cuts and fiscal, monetary, and regulatory policies have fostered this growth environment, leading to a prediction-defying Q2 FY26 GDP growth of 8.2 percent. Both urban and rural consumption contributed, with rural demand boosted by good monsoons and government incentives. Manufacturing output grew impressively by 9.1 percent in Q2 FY26, driven in part by the Production Linked Incentive (PLI) program, which attracted investments totaling ₹2 lakh crore and generated over 12.6 lakh jobs.

Government capital expenditure remains the primary growth driver, while private capital expenditure is gradually picking up, supported by strong corporate balance sheets, easier banking conditions, and growth in corporate bond markets, which reached $642 billion by March 2025. India’s economic trajectory is fueled by comprehensive reforms including GST rate rationalization, income tax rationalization, labor code streamlining, and policies focusing on clean energy and energy self-reliance. The Insolvency and Bankruptcy Code (IBC), implemented nine years ago, has been pivotal in resolving ₹12 lakh crore of stressed debt and reducing non-performing assets, thereby improving the ease of doing business and enhancing investment attractiveness.

The investor base expanded notably in 2025, with increased participation from younger generations, women, and households in tier-2 and tier-3 cities, reducing dependency on foreign capital. Monthly Systematic Investment Plan (SIP) flows highlight growing retail investment, which supports capital formation and wealth creation. However, foreign portfolio investors showed caution, with net outflows of around $10.4 billion in 2025, exerting pressure on the Indian rupee. Regulatory initiatives such as SEBI’s ‘India Market Access’ platform and RBI’s proposal to expand External Commercial Borrowings framework aim to improve global investor participation and access to capital.

Looking ahead to 2026, India is expected to shift from policy intent to tangible outcomes with ongoing policy easing, regulatory clarity, and FDI openings in insurance and nuclear energy sectors supporting sustained growth. The financialisation of savings and increased capital expenditure in sectors like electronics manufacturing services and defence are anticipated to drive the next investment cycle. Strengthened corporate balance sheets, rising credit demand, and improved earnings position India to leverage its structural advantages and emerge as a significant global growth engine amid ongoing global uncertainty.