India strengthened its economic and strategic engagement across the Indo-Pacific this week, advancing cooperation with Australia, New Zealand and Indonesia in energy, trade, defence and maritime security. According to reports from Business Standard, the diplomatic gains came against a less favourable economic backdrop, with the International Monetary Fund (IMF) trimming India's FY27 growth forecast while higher crude oil prices weighed on the rupee and prompted another downgrade from the Asian Development Bank (ADB).
India and Australia operationalised arrangements for uranium supplies under their civil nuclear agreement and announced 18 outcomes spanning defence, maritime security, critical minerals and energy. As reported by Business Standard, the two countries also pushed for an early conclusion to negotiations for a comprehensive economic agreement. India and New Zealand elevated their relationship to a strategic partnership and targeted doubling annual bilateral trade in goods and services to ₹35,000 crore by 2030. Their agreements covered maritime cooperation and reciprocal logistics support, alongside efforts to implement their free trade agreement early.
India and Indonesia announced 20 outcomes, including a missile agreement worth more than $600 million covering BrahMos cruise missiles and Astra air-to-air missiles. According to Business Standard, the countries also agreed to explore reviving the stalled Sabang Port project and deepen cooperation in critical minerals, digital infrastructure, local-currency transactions and maritime security. The India-European Union free trade agreement is expected to be signed by December and implemented during April-June 2027 after ratification, according to the EU's chief negotiator.
The IMF lowered India's FY27 growth forecast from 6.5 per cent to 6.4 per cent, while the Asian Development Bank (ADB) cut its projection from 6.9 per cent to 6.6 per cent, citing higher oil prices and weaker household purchasing power. As reported by Business Standard, the rupee closed at a one-month low of 95.5550 per dollar after crude prices surged amid renewed US-Iran tensions. India's foreign-exchange reserves rose $7.26 billion to $674.193 billion in the week ended July 3.
The government approved ₹1,237.58 crore under PM-SETU, expanding the industry-led skilling programme to 200 Industrial Training Institute clusters. According to Business Standard, it also waived basic customs duty on key electronics manufacturing inputs until March 31, 2029. Separately, India asked the US Trade Representative to reconsider a proposed 12.5 per cent additional tariff, arguing that its forced-labour investigation lacked country- and sector-specific evidence.
