The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA), comprising Iceland, Switzerland, Norway, and Liechtenstein, took effect on Oct. 1, 2025. Signed in April 2025, TEPA includes binding commitments of $100 billion in investments and the creation of over 1 million jobs over the next 15 years. These investments will be pivotal in India's economic growth trajectory, supporting its long-term goal of expanding from a $4 trillion to a $20 trillion economy. Currently, India-EFTA trade totals about $24.4 billion in fiscal year 2024-25, highlighting significant scope for future growth under the new framework.
After four months of decline, auto sales rebounded strongly in September, with revised GST rates and the festive season spurring demand and customer purchases. Wholesale volumes rose 5.4% year over year, while retail sales surged to nearly 25%. The positive momentum is expected to continue through October and November, supported by new model launches and favorable financing conditions.
India's electronics system design and manufacturing (ESDM) industry is projected to double to $90 billion over the next five years, expanding at a 20%-25% CAGR. Between fiscal years 2020 and 2025, the segment recorded an impressive 28% CAGR, driven by rising disposable incomes, deeper smartphone adoption, and increased use of smart devices and automotive electronics. Smartphones alone accounted for 62% of the total ESDM market share in FY 2025, underscoring the sector's growing importance in India's manufacturing ecosystem.
The Indian government aims to double defense exports to $5.63 billion by FY 2029. The private sector is expected to take a leading role in manufacturing and exports, with private defense manufacturers projected to grow their revenue by 16%-18% in FY 2025, according to Crisil Ratings. This growth is backed by robust domestic demand and rising investments. The government has also announced a $7 billion package to strengthen the shipbuilding industry, aiming to position India among the top 10 shipbuilding nations by 2030 and top five by 2047. This initiative includes financial assistance for shipyards and the creation of a maritime development fund to attract private investment and enhance global competitiveness in this strategic sector.
A few recently announced projects and investment news items are listed below:
Action Construction Equipment Ltd. is setting up a new manufacturing facility in Palwal, Faridabad, to expand its construction crane production capacity. The company aims to double its revenue by 2030, leveraging infrastructure growth and rising equipment demand across India.
Following the demerger of its automotive and industrial business divisions, SKF India plans to expand its capacity across industries to enhance operational efficiency and market reach.
Jindal Stainless plans to open a $5 billion stainless steel manufacturing facility in Raigad, Maharashtra. The project emphasizes the company's long-term commitment to strengthening India's steel value chain and meeting rising domestic and export demand.
Vedanta Ltd., India's largest aluminum producer, with a market share of over 50%, will invest $1.5 billion to increase its production capacity from 2.4 million tons per annum (MTPA) to 3.1 MTPA by FY 2028. The expansion aligns with the requirements of the government's Make in India initiative and the rising global demand for lightweight metals.
Lloyds Metals has announced its plans to invest about $2.5 billion over the next five years to develop an integrated steel plant with a total capacity exceeding 4 MTPA. The project includes 3 MTPA for hot-rolled coils and 1.2 MTPA for wire rods, reinforcing India's growing self-reliance in core steel products.
Ashok Leyland has entered a long-term strategic partnership with China's CALB group to develop next-generation battery technologies in India. The collaboration, estimated at roughly $600 million over seven years, will focus on advanced batteries for electric vehicles and energy storage systems, supporting India's clean mobility goals.
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