It was a landmark week for the Indian economy but a sombre one for its politics. From a historic trade pact with the European Union to the sudden demise of a political titan in Maharashtra, and a long-awaited regulatory nod for the country's largest stock exchange, the final week of January 2026 had a lot in store.
Here are the top five events that defined the week, heading into Budget.
The 'Mother of All Deals': India-EU FTA
After nearly two decades of negotiations, India and the European Union concluded the India-EU Free Trade Agreement on January 27 during the 16th India-EU Summit in New Delhi. Dubbed the "mother of all deals," the pact creates a free trade zone covering 2 billion people and roughly 25% of global GDP.
The agreement will see the EU eliminate duties on 99% of Indian exports by value, providing a massive boost to labour-intensive sectors like textiles, leather, and gems. In return,
India will slash tariffs on iconic European exports: wine duties will drop from 150% to 20% in phases, and car tariffs will be cut from 110% to as low as 10%. Crucially, the deal includes a "mobility" framework, easing visa hurdles for Indian professionals and students heading to the EU.
ALSO READ: India-EU Free Trade Deal Explained: What Changes, What Gets Cheaper, And Which Sectors Get A Boost
The Death of Ajit Pawar
Maharashtra was plunged into mourning on January 28 following the tragic death of Deputy Chief Minister and NCP Chief Ajit Pawar. The 66-year-old leader was killed when a chartered Learjet 45 crashed while attempting to land at Baramati airport in Pune district.
ALSO READ: Ajit Pawar No More: What Does His Death Mean For Maharashtra Politics?
Fed Holds Steady, Trump Taps Kevin Warsh
In a move that could signal a wholesale rethinking of American monetary policy, President Donald Trump nominated former Fed Governor Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve. Announced on Friday, the nomination came just days after the Fed decided to hold interest rates steady in the 3.5% to 3.75% range.
ALSO READ: Trump Picks Kevin Warsh To Succeed Jerome Powell As New US Fed Chairman
Economic Survey: A Resilient 7% Growth Path
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 on January 31, painting a picture of a "structurally stronger" Indian economy. The Survey forecasts GDP growth to exceed 7% for the coming fiscal year, supported by robust domestic demand and a record foreign exchange kitty of $701 billion.
As the curtain-raiser for tomorrow's Union Budget, the document suggests the government will continue its path of fiscal consolidation, targeting a deficit of 4.4% for FY26.
The Decade-Long Wait Ends: NSE's IPO Nod
In a Friday evening bombshell for capital markets, SEBI finally granted a No-Objection Certificate (NOC) to the National Stock Exchange (NSE) for its Initial Public Offering. The approval ends a nine-year regulatory stalemate that began in 2016, largely due to the co-location and "dark fibre" investigations.
ALSO READ: 10-Year Wait Ends: SEBI Gives NOC To NSE IPO, Listing Expected In 8-9 Months
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