India’s Economic Crossroads: From Agri Reforms to Mega IPOs — October 2025

India’s Economic Pulse — October 12, 2025

wrote by :- PT

1. Big Push in Agriculture: ₹35,440 Crore Schemes Launched

    

    Prime Minister Modi rolled out two major central government initiatives worth ₹35,440 crore aimed at revitalizing 100 underperforming agricultural districts. The schemes focus on boosting pulse production, cutting import dependence, and strengthening farmers’ export capacity. This move underscores the government’s emphasis on food security and self-reliance (Atmanirbharta).

Why it matters: Agriculture still employs a large portion of India’s rural population. Strengthening productivity here not only helps rural incomes, but can ease inflationary pressure on food items.

2. Trade Strategy — FTAs & Global Negotiations

    

    India is actively pursuing Free Trade Agreements (FTAs) with the UK, UAE, and other partners to counter the effects of rising global tariffs.

India recently struck a landmark deal with the European Free Trade Association (EFTA), which analysts expect to generate employment and attract massive investments over 15 years.

Shaktikanta Das emphasized that India’s trade talks prioritize fair pacts that protect national interests in a fragmented global order.

Takeaway: As global trade friction rises, India is positioning itself to enter more favourable regional treaties and reduce vulnerability in export sectors.

3. India’s Electronics Ambition: Building a $500B Ecosystem

    

    India’s electronics manufacturing sector has surged from ₹1.9 lakh crore (in 2014–15) to ₹11.3 lakh crore in 2024–25 — a six-fold increase. Driven by the PLI scheme, SPECS, and the new ECMS policy, the government aims to develop a $500 billion electronics ecosystem by 2030–31.

Still, challenges remain: India relies heavily on imported semiconductors and critical components, making the supply chain vulnerable.

Why this is a game-changer: Success here would mean India is not just assembling devices, but designing them — elevating its role in global tech value chains.

4. Services Growth Slows, But Demand Holds Up

    

    In September 2025, India’s services sector growth eased (PMI dropped to ~60.9), largely due to weaker export orders amid global demand cooling. However, domestic demand and digital investments continued to provide support.

Composite PMI (manufacturing + services) also cooled from August, but remained in expansion territory (~61.0).

Implication: The deceleration is cautionary, but not alarming. India's heavy reliance on domestic consumption gives it some buffer against external shocks.

5. Record IPOs Test Market Strength

India’s equity markets are seeing a splash:

Tata Group’s shadow-lending arm raised ₹15,500 crore (~$1.7B), and

LG’s Indian unit followed with a massive oversubscribed IPO, the largest of its kind in 17 years.

These listings will test the depth and enthusiasm of Indian capital markets. A strong debut could catalyze more IPOs in the coming months.

6. Growth Outlook & Macro Stance

    

    The World Bank raised India’s FY26 GDP growth forecast to 6.5%, citing resilience but warned of tariff risks ahead.

Finance Minister Nirmala Sitharaman reaffirmed that India’s growth is “resilient,” backed by increased capital spending, but cautioned against complacency.

On monetary policy: RBI is holding rates steady (5.50%), balancing inflation control and growth support.