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Dear Readers,

Introduction: Wishing you all a happy and prosperous New Year. God bless us all to work hard and perform our duties with righteousness and dedication for the growth of Bharat. We will be celebrating Makar Sankranti in this month when Bharatvasis take holy dip in river Ganges, while the annual Inter-national Kite Festival on the Sabarmati riverfront in Ahmedabad fosters bonhomie, community bonding as well as promotes tourism. Festivities are galore across India during this time in the form of Pongal in Tamil Nadu, Uttarayan in Gujarat, Magh Bihu in Assam and Lohri in Punjab. West Bengal has Saraswati Puja coinciding with the birthday of Netaji Subhash Chandra Bose on 23rd of January this year. Saraswati Puja is dedicated to Goddess Saraswati, the Hindu goddess of knowledge, learning, music, and arts. The day is also known as Vasant Panchami.

Netaji Subhash Chandra Bose was a prominent Indian freedom fighter who played a key role in India’s struggle for independence from British rule. The day honors his bravery, leadership, and vision for an independent India.

We will also be celebrating Republic Day on 26th of January. Republic Day celebrates India’s adoption of its own laws and governance and dedication of Bharatwasis towards the Nation. We concluded the16th edition of the WorldConfluence of Humanity, Power and Spirituality initiated by the Kanoria Foundation which was graced by global spiritual leaders, motivational speakers, educationists and other dignitaries. The message of all was echoing “All In One, One In All”. The Supreme Almighty Lord resides in all living beings. All are manifestations of God. Spiritual intelligence is our intuition which is usually our inner voice. We should all listen to our own inner voice which is our spiritual intelligence.

Indian Economy: India’s real GDP is expected to be 7.4% in FY26, as per Government of India’s advance estimates. India overtook Japan in nominal GDP to become the world’s 4th largest economy. Continued prospects suggest the Indian economy can challenge Germany for the 3rd spot by 2026. Real estate, manufacturing, construction, infrastructure and service sectors, specially IT, finance and digital services have shown radiant growth. The high tariffs imposed by USA on our merchandise exports to USA have had minimal impact on these important sectors. The startup ventures are also driving economic growth and several of them are achieving high valuations leading to creation of more unicorns.

IMF projection shows 6.6% growth in FY26 for India. The final growth figure may be higher during FY26. Global trade uncertainty and tariff pressure have started impacting our exports. IMF projects GDP growth of 6.2% for India in FY26. The Reserve Bank of India (RBI) has raised its real GDP growth projection for FY26 to 7.3%, up from its earlier estimate of 6.8%. Current account deficit narrowed in the July – September 2025 quarter (Q2FY26) to USD 12.3 bn or 1.3% of GDP, from USD 20.8 bn (2.2%) a year earlier. Foreign exchange reserves fell by USD 10.9 bn after an increase of USD 18.6 bn on a balance of payment basis. Net FDI recorded an inflow of USD 2.9 bn, reversing a net outflow of USD 2.8 bn a year earlier.

Anant Goenka, FICCI President said GDP is expected to be over 7% this fiscal year based on strong macroeconomic fundamentals and ongoing reforms. He said challenges on the trade front too will need to be resolved in a very short period. Further simplification of rules is needed for ease of doing business. Manufacturing sector’s share in GDP needs to be increased.

Finance Minister Nirmala Sitharaman said the Indian economy is set to grow at 7% or higher backed by strong fundamentals and domestic demand. She said that low inflation, GST rate rationalisation and steady consumer spending will continue to support the economy despite global uncertainties. However, the economy continues to face external pressure for high oil prices, trade deficit and weakening rupee. Customs reform will be the next major challenge.

Entrepreneurs have been selective about sectors while making investments. Lender’s attitude, lack of policy support has prevented unleashing the animal spirit so far.

Cover Story: Real estate sector is the second largest employment generator in the country after agriculture. It is poised for growth and is expected to reach

USD 1.2 trillion by 2030 and is expected to contribute 13% to the country’s GDP in 2025. Long-term estimates suggest the real estate market in India could hit USD 5 – 7 trillion by 2047. Reduction in repo rate and declining inflation is anticipated to boost the Indian economy’s affordable housing market. This will be supported by stabilization of building material costs, GST rate cuts, increasing reforms and low inflation all leading to more savings and thereby more purchasing power for the general population.

Rising population, nuclear families, growing income, shifting of rural population to urban areas in search of work and various other factors have created demand for housing, infrastructure, office space and logistics. High price of land and multiple approvals have raised the cost of property. Real Estate companies are pushed to IBC because of a mix of financial stress, project delays, and legal pressures. Delay in multiple approvals and sanctioning of building plans leads to rising cost, delay in sales, thereby resulting in delay in payments to the lenders who, instead of being patient, start charging high interest on outstanding loan amounts and term the project as fraud. However, despite temporary setbacks, the real estate sector in some segments is expected to revive.

IBC: In December 2025, India’s Insolvency and Bankruptcy Code (IBC) framework saw important policy and regulatory movement. The IBC (Amendment) Bill, 2025 remained under parliamentary scrutiny, with a Lok Sabha committee recommending clearer timelines, reduced litigation, and stronger creditor-led resolution mecha- nisms. The government’s focus is on speeding up insolvency resolution, improving recoveries, and enhancing transparency.

Despite these reforms, structural challenges persist, especially tribunal backlogs and unresolved stress in the real estate sector. Overall, December 2025 marked a phase of reform consolidation, with major changes likely to be implemented in 2026. Creditors/Lenders attitude should be more accommodating towards the borrowers.

Conclusion: With strong domestic demand, government support and structural changes, India is well positioned to sustain solid growth through FY26 and into FY27, consolidating its status as one of the fastest growing major economies. The Indian economy is predicted to continue expanding rapidly in FY26 thanks to long – term reforms and sustained domestic demand.