India's economy and business spheres have been dynamic in the last 24 hours, with several key announcements and ongoing developments shaping the nation's future trajectory.

Space Economy Set for Massive Growth

India is accelerating its long-term space strategy, aiming to establish the Bharatiya Antariksh Station by 2035 and achieve a human landing on the Moon by 2040. Space Minister Jitendra Singh announced that India's space economy, which has expanded significantly due to private participation, is projected to grow from its current US$8 billion to US$40-45 billion within the next 8-10 years. This ambition aligns with Prime Minister Narendra Modi's vision to narrow the technological gap with global space leaders. The Indian Space Research Organisation (ISRO) aims to increase India's share in the global commercial space market from less than 2% to 8-10% over the next decade.

Microsoft Commits US$17.5 Billion to India's AI Future

In a major boost to India's technological ambitions, Microsoft announced its largest investment in Asia, committing US$17.5 billion over four years (CY 2026-2029) to advance India's cloud and Artificial Intelligence (AI) infrastructure, skilling, and operations. This investment builds on an earlier US$3 billion commitment made this year and aims to integrate advanced AI capabilities into key digital public platforms like e-Shram and the National Career Service (NCS) to benefit over 310 million informal workers. Microsoft is also doubling its commitment to equip 20 million Indians with essential AI skills by 2030.

Critical Trade Talks with US and EU Underway

India is engaged in high-stakes trade discussions with both the United States and the European Union. A US delegation arrived in India for bilateral trade talks from December 9-11, focusing on reviewing tariffs and advancing a proposed bilateral trade agreement. These talks are crucial as the US has imposed tariffs on Indian goods, partly linked to India's Russian crude imports. The ongoing negotiations aim to resolve tariff issues and eventually target a significant increase in bilateral trade to US$500 billion by 2030.

Separately, India and the EU held intensive discussions last week to expedite the conclusion of their long-pending Free Trade Agreement (FTA). Commerce Minister Piyush Goyal and EU Commissioner Maroš Šefčovič reviewed the progress, with both sides expressing a strong political resolve to address pending issues constructively for a mutually advantageous outcome. The EU is seeking tariff cuts on items like automobiles and medical devices, while India aims for duty-free access for labor-intensive goods.

Record Growth in Defence Production and Exports

India's defence manufacturing sector has achieved record production levels and a sharp rise in exports. Defence Minister Rajnath Singh announced that defence production grew to a record ₹1.51 lakh crore, with exports surging to nearly ₹24,000 crore. This marks a significant shift towards self-reliance, with production increasing by 174% from ₹46,000 crore in 2014-15. These remarks were made during the inauguration of 125 Border Roads Organisation (BRO) infrastructure projects worth ₹5,000 crore across various states.

IIT Bombay Launches First Institute-Owned AI Company

In a pioneering move, the Indian Institute of Technology Bombay has incorporated its own AI company, BharatGen Technology Foundation. Registered in November 2025, BharatGen aims to build India's first sovereign large language model rooted in the country's linguistic, cultural, and social diversity, designed to work across more than 22 Indian languages. This initiative, backed by government funding, signifies a strategic step by a premier academic institution to directly shape India's AI future.

IndiGo Faces Flight Curtailment Amid Disruptions

IndiGo, India's largest airline, is facing significant operational challenges, leading to government intervention. Following widespread flight cancellations due to pilot roster issues related to new flight duty time limitation (FDTL) rules, the Ministry of Civil Aviation has ordered IndiGo to cut its planned flights by 10%. IndiGo itself decided to slash 400-500 flights, almost double the government-mandated cut, to stabilize its schedule. This disruption has affected thousands of passengers, and the government has imposed fare caps and instructed other carriers to absorb the excess demand.

Government Cracks Down on Fertiliser Malpractices

The government has taken stringent action against malpractices in the fertilizer sector, cancelling 5,371 licenses of fertilizer firms for black marketing, hoarding, and distributing substandard material between April and November. Union Minister Jagat Prakash Nadda informed the Rajya Sabha about these measures, which are being enforced under the Essential Commodities Act and the Fertiliser Control Order to protect farmers' interests.

Positive Economic Outlook from ADB

The Asian Development Bank (ADB) has projected a positive growth trajectory for India, forecasting its Gross Domestic Product (GDP) to grow by 6.5% in both fiscal years 2025 and 2026. This outlook is supported by strong domestic demand, a normal monsoon, and anticipated monetary easing. The ADB also noted that India's strong growth and demand for technology brighten developing Asia's prospects.