Davos: Global trade uncertainty persists, but India’s economic fundamentals remain strong, say industry leaders

Davos 2026: India’s economic outlook remains resilient despite persistent global uncertainty, shifting trade dynamics and delayed negotiations with the United States, according to senior industry leaders Rajan Mittal and Anant Goenka. Speaking on India’s position in the evolving global order, both leaders highlighted the country’s growing focus on diversification through free trade agreements (FTAs), domestic reform momentum and the need to accelerate ease and speed of doing business.

Anant Goenka, Vice Chairman of RPG Group and President of FICCI, said India has been actively expanding its trade footprint beyond traditional partners as negotiations with the US continue to face delays. “For the last few quarters, we have believed a US trade deal was around the corner, but it has remained elusive,” he said. In response, India has stepped up FTA efforts with countries such as New Zealand, Oman and Jordan, while negotiations with the European Union are expected to be a major milestone. 

Goenka noted that India’s FTA strategy has shifted from developing economies to developed markets, where trade complementarities are stronger, creating new opportunities for Indian businesses to diversify exports and supply chains.

Rajan Mittal, Vice Chairman of Bharti Enterprises and former FICCI president, said global trust levels between nations and institutions are at a historic low, contributing to uncertainty. “The world is in flux,” he said, adding that geopolitical tensions and trade friction have impacted confidence and capital expenditure. However, Mittal emphasised that India’s economic fundamentals remain strong, supported by a large domestic consumption base and close coordination between the government and industry. “India is growing at 6–7%. While double-digit growth is desirable, there are external factors beyond our control,” he said.

Mittal also stressed that trade negotiations must remain equitable and safeguard India’s economic sovereignty. “Any trade deal has to consider entrepreneurs, MSMEs and farmers. We cannot compromise on that,” he said, adding that Indian businesses have shown agility and resilience despite sector-specific challenges.

Domestic reforms and Union Budget

On domestic policy, Goenka said 2025 marked a year of consumption-led growth, driven by income tax changes and GST reforms that boosted household spending. While private capital expenditure has lagged, he expressed optimism that improving demand conditions would revive investment. Looking ahead to the Union Budget 2026, Goenka said the government’s focus on ease of doing business remains critical, particularly reforms related to capital, labour and power costs.

He also flagged defence manufacturing and critical minerals as priority areas. Goenka suggested increasing defence research capital outlay from 26% to 30% to support new technologies such as unmanned systems. He further proposed a critical minerals tailings programme to recover minerals from used products, reducing India’s reliance on imports.

Ease of doing business, both leaders agreed, remains a work in progress. Goenka pointed to judicial delays and uneven implementation at the state level as persistent challenges. States such as Andhra Pradesh, Tamil Nadu and Maharashtra were cited as examples of reform-driven growth, with Goenka advocating greater competition among states to attract investment.

Mittal added that India must move beyond ease of doing business to “speed of doing business”. He warned that manufacturing, currently at 16–17% of GDP, must rise to around 25% to sustain long-term growth. Highlighting MSME challenges, he called for fewer licences, lower compliance burdens and faster clearances, arguing that trust-based regulation combined with strict penalties for violations would unlock entrepreneurial growth.

Together, the leaders said India’s next phase of growth will depend on reform execution, trade diversification and the ability to move faster in a volatile global environment.