India has once again secured its position as the fastest-expanding major economy, even as the global landscape continues to be shaped by uncertainty, geopolitical frictions, and strained multilateral frameworks. Despite these headwinds, India’s growth trajectory remains firmly near 7% for the current fiscal year, reinforcing its status as a long-term economic powerhouse.
During an interaction with business leaders in Tel Aviv, Union Minister of Commerce & Industry Piyush Goyal highlighted that India posted a robust 7.8% GDP expansion in the first quarter of FY26, with second-quarter growth expected to surpass 7%. These outcomes significantly outperform forecasts from the IMF and various international institutions, reaffirming India’s resilience and upward momentum.
Minister Goyal also pointed to S&P Global Ratings’ decision in August to upgrade India’s sovereign credit rating, marking the first such revision in nearly two decades. He emphasized that this upgrade reflects India’s strengthened macroeconomic environment, controlled inflation, and improved financial stability. Yet, he noted that several global agencies continue to underestimate the country’s long-term growth capacity.
In a parallel development, India and Israel have formally agreed to restart discussions on a Free Trade Agreement (FTA) after signing the terms of reference. The renewed negotiations aim to expand market access gradually, reduce non-tariff restrictions, create fresh investment opportunities—especially for Israeli firms—increase employment, and streamline customs systems.
The proposed pact is expected to act as a major catalyst for bilateral trade, harnessing the unique capabilities of both nations while reinforcing their deep-rooted strategic trust. Previous negotiations in 2010 and 2011 did not advance to completion, making this revival a pivotal move toward stronger commercial integration and more dynamic trade flows between India and Israel.
With accelerating economic performance and expanding global partnerships, India’s long-term growth outlook continues to shine, positioning it as a central driver of global economic progress for decades ahead.
