Best of BS Opinion: India's trade push and the reforms it still needs

Here are the best of Business Standard's opinion pieces for today

India and the European Union have concluded a long-pending free trade agreement, creating one of the world’s largest integrated markets and deepening ties beyond commerce, notes our first editorial. The deal covers nearly two billion people and is expected to expand trade from $136.54 billion in 2024-25 through wide tariff liberalisation on both sides. Alongside trade, the summit delivered outcomes on defence, mobility, services, and student visas, though challenges remain on carbon rules, competitiveness, and India’s wider trade reform agenda. 

Meanwhile, state power distribution companies returned to profitability in 2024-25 after over a decade of losses, posting a collective profit of Rs 2,701 crore. Reforms such as automatic fuel cost pass-through, smart metering, and performance-linked funding under the Revamped Distribution Sector Scheme narrowed revenue gaps and reduced losses. However, as our second editorial highlights, accumulated losses of Rs 6.47 trillion persist, driven by subsidies, cross-subsidisation, and high industrial tariffs. These contradictions continue to weigh on competitiveness, with proposed reforms now placing hope on introducing greater retail competition without destabilising politically sensitive pricing structures. 

And with the Union Budget 2026 around the corner, A K Bhattacharya notes that the Union Budget for 2026-27 will mark several firsts, including being presented on a Sunday, the absence of a formally designated finance secretary, and becoming Nirmala Sitharaman’s eighth consecutive full Budget. However, a key uncertainty is the imminent release of a new GDP series with a 2022-23 base, which could revise fiscal ratios soon after the Budget. The column questions why this data, and the Finance Commission’s report, were not disclosed earlier. 

Vinayak Chatterjee argues that India’s urban transport investments are generating large private land value gains while public systems struggle financially. Metro projects rarely recover costs through fares, yet rising land prices around stations largely benefit private owners. Although land value capture tools exist, weak implementation has limited results. Chatterjee calls for integrated transport and land-use governance, denser development around transit, and stronger commercial models to rebalance public finances. 

Finally, Aditi Phadnis reviews Saira Shah Halim’s Comrades and Comebacks, a political and personal account of the Indian Left rather than merely a theoretical text. Drawing on Halim’s electoral experience, the book traces the Left’s ideological positions, internal divisions, and strategic missteps, while acknowledging governance successes in Kerala and Tripura. Positioned as a call for renewal, it urges introspection, intersectional politics, and engagement with younger readers concerned about India’s democratic trajectory. 

Stay tuned!