INDIA Trends and Developments Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
Introduction In 2026, India has emerged as one of the world’s most consequential business environments. With GDP growth projected at around 7% for FY2025–26 (IMF), the highest among major economies, and a clear tra - jectory towards becoming the world’s third-largest economy by 2030, India presents a combination of scale, structural reform momentum and consumer market depth that only a few jurisdictions can match. Private consumption accounts for approximately 60% of GDP, underpinned by a median population age of 29 and consumer spending forecast to reach USD4.3 trillion by 2030. The geopolitical context has simultaneously posed challenges and strengthened India’s investment prop - osition. Ongoing conflicts in Europe and the Middle East have driven energy price volatility, increases in costs and disruption across global supply chains and trade routes. Additionally, the India–US trade deal framework has meaningfully mitigated tariff exposure for Indian exporters while further strengthening the strategic bilateral relationship. The landmark India–EU Free Trade Agreement, cover - ing approximately 25% of global GDP and expanding FTA coverage of Indian exports from 22% to 71%, further represents a structural shift of considerable commercial significance. Against this backdrop, sec - tors such as manufacturing, technology and AI, global capability centres (GCCs), service exports, renewable energy and electric vehicles are increasingly reflect - ing a durable long-term transformation rather than a cyclical growth opportunity. Regulatory Environment India offers a codified legal framework for business operations, supported by comprehensive commercial legislation, sector-specific regulation and policy-driv - en government initiatives aimed at improving Ease of Doing Business (EODB). Key regulations applicable to businesses in India The principal pieces of legislation governing business activities in India include: Companies Act , 2013 ( Act ): This is the principal legis - lation governing corporate entities in India, regulating
incorporation, financing, governance, mergers, amal - gamations, capital reduction, restructuring, distribu - tion of profits and winding up. The Act imposes strict governance requirements such as appointment of independent directors and woman directors for speci - fied companies, constitution of audit and other spe - cialised committees, appointment of key managerial personnel, stricter related-party transaction controls, vigil mechanisms, preservation of records, secretarial audits and compliance with prescribed accounting standards. Securities and Exchange Board of India Act , 1992 : For listed companies, governance moves beyond the Act into a significantly more disclosure-intensive and enforcement-driven framework administered by the Securities and Exchange Board of India (SEBI), effectively acting as the principal gatekeeper of capi - tal market behaviour, promoter conduct, public share - holder protection and takeover discipline. The key SEBI regulations include: • SEBI ( Issue of Capital and Disclosure Require- ments ) Regulations , 2018 ( ICDR ):These govern IPOs, follow-on public offers, rights issues, QIPs, preferential allotments and other capital raising exercises. • SEBI ( Listing Obligations and Disclosure Require- ments ) Regulations , 2015 ( LODR ): These prescribe continuous disclosure obligations and the govern - ance framework for listed entities, governing board composition, independent directors, committee structures, material event disclosures, related-party approvals and disclosures, and governance report - ing. • SEBI ( Substantial Acquisition of Shares and Takeo- vers ) Regulations , 2011 ( Takeover Code ):These reg - ulate acquisition thresholds and mandatory open offers. Once prescribed thresholds are breached, an acquirer must extend an exit opportunity to public shareholders through an open offer. • SEBI ( Prohibition of Insider Trading ) Regulations , 2015 : These prohibit dealing in securities while in possession of unpublished price-sensitive informa - tion (UPSI), mandating robust compliance systems. In transactions involving listed companies, due dili - gence itself must be structured through an insider
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