India's economy continues to demonstrate significant resilience, with the government projecting a real GDP growth rate of **7.4%** for the fiscal year 2025-26. This trajectory positions India as the world's fastest-growing major economy, supported by a nominal GDP growth forecast of **8%** to **8.7%**. Sector-specific performance highlights a surge in the services sector, which is expected to grow by **9.1%**, while manufacturing is gaining momentum with a projected **7%** expansion. These figures are bolstered by high-impact infrastructure and construction growth, recently recorded at **10.5%**. The inflation landscape has shifted favorably for corporate stability. Retail inflation (CPI) dropped to a multi-year low of **3.34%** in early 2025, while the Reserve Bank of India maintains a target of **4.2%** for the upcoming fiscal year. Wholesale inflation (WPI) has entered negative territory at **-1.21%**, significantly lowering input costs for businesses. Corporate earnings are entering a recovery phase following a period of moderation. The corporate profit-to-GDP ratio hit a 17-year high of **4.7%**, with listed companies reaching **5.1%**. Market analysts expect a double-digit earnings growth of **13%** to **16%** for the 2025-26 period, driven by festive demand and operational efficiencies. Foreign investment sentiment is rebounding after a period of heavy selling. In early February 2026, Foreign Portfolio Investors (FPIs) turned net buyers, infusing over **₹33,487 crore** in a single fortnight. This shift is largely attributed to a landmark interim trade agreement with the US and a comprehensive Free Trade Agreement with the EU. The India-US trade framework aims to eliminate tariffs on industrial and agricultural goods, while the EU deal provides preferential access for **99%** of Indian exports. These strategic alliances, combined with a **$100 billion** investment commitment from the EFTA, are expected to create a more integrated and competitive industrial base. Equity markets reflect this cautious optimism, with the Nifty 50 recently stabilizing above the **25,700** mark. While global uncertainties regarding international tariff policies persist, India’s domestic fundamentals—characterized by easing core inflation and robust capital expenditure—provide a strong foundation for long-term growth. [India Market Trends 2025](https://www.youtube.com/watch?v=iNKn9Fosuj4) This video provides an expert breakdown of the latest Economic Survey and GDP data to help understand the current drivers of India's growth. http://googleusercontent.com/youtube_content/0