India's economy is being hailed as a "key growth engine" globally, with both the International Monetary Fund (IMF) and the World Bank expressing confidence in its trajectory despite prevailing international economic turbulence and the impact of US tariffs. The IMF's Managing Director, Kristalina Georgieva, highlighted India's role as a primary growth driver, noting that global growth patterns are shifting as China decelerates. The World Bank has consequently raised India's growth forecast for FY26 to 6.5%, up from an earlier projection of 6.3%, attributing this to resilient domestic demand, a strong rural recovery, and the positive effects of Goods and Services Tax (GST) reforms.

The first quarter of FY2025-26 saw India record a robust 7.8% real GDP growth, surpassing the RBI's earlier estimate of 6.5%, propelled by revived consumption and recent GST rate reductions. For the full FY2025-26, GDP is anticipated to grow between six and six-and-a-half percent, comfortably exceeding the projected global average of approximately three percent. Domestic reforms, particularly the rationalization of the Goods and Services Tax (GST) in September 2025, have further bolstered the economy by consolidating GST into two main slabs, exempting essentials, and taxing luxury goods up to 40 percent. This simplification is expected to lower consumer prices, stimulate demand, and enhance India's business environment. Inflation, despite a slight uptick in August 2025 to 2.1%, remains well within the RBI's target band, aided by GST rationalization which is projected to reduce prices by 60–80 basis points over the next year.

The Reserve Bank of India (RBI) has introduced several significant initiatives and reforms. The central bank has launched a draft Ombudsman Scheme 2025, proposing broad powers for the RBI ombudsman to resolve customer grievances, remove limits on the financial value of disputes, and introduce high ceilings for compensation. This move aims to provide a cost-effective, non-adversarial mechanism for complaints against regulated entities. Furthermore, the RBI is set to launch a pilot for deposit tokenization on October 8th, utilizing its wholesale Central Bank Digital Currency (CBDC) as the base layer for blockchain-backed digital settlements across banks. RBI Governor Sanjay Malhotra also announced the development of a Unified Markets Interface (UMI) to tokenize financial assets using wholesale CBDC, envisioning it as a next-generation financial market infrastructure. However, Governor Malhotra also highlighted increasing concerns over digital fraud in India, urging fintech firms to design user-friendly products and emphasizing the need for a secure and fraud-proof IT system.

On the stock market front, Indian benchmark indices snapped a four-day winning streak on Wednesday, October 8th. The Sensex closed 153 points (0.19%) lower at 81,773.66, while the Nifty 50 declined by 62 points (0.25%) to 25,046.15, largely due to profit booking ahead of the September-quarter (Q2) results season. The BSE Midcap and Smallcap indices underperformed, falling by 0.74% and 0.42% respectively. However, IT stocks showed resilience, with the Nifty IT index rising 1.51%, led by gains in companies like Infosys and TCS. For October 9th, Indian markets are poised for a positive start, with Gift Nifty indicating a higher opening, driven by easing geopolitical tensions following an agreement on a ceasefire deal between Israel and Hamas.

In other business news, the real estate sector in India is experiencing a premium shift, with homes priced above Rs. 1 crore (US$ 112,688+) accounting for 52% of Q3 home sales in 2025 across top cities. Mumbai remained the largest market, while Chennai recorded the fastest growth. The rupee remained under pressure, closing slightly weaker at 88.79 against the US dollar on Wednesday, nearing its record low. The Micro, Small, and Medium Enterprises (MSME) sector, which employs approximately 26 crore individuals and contributes nearly one-third of India's GDP, is seen as the "backbone of the Indian economy," with government initiatives aimed at empowering it through technology adoption and market access. Maharashtra's Chief Minister Devendra Fadnavis invited global investors, highlighting the state's "business-friendly" ecosystem, streamlined industrial permits, and significant infrastructure projects like the Navi Mumbai International Airport. Rolls-Royce also expressed "deep ambitions" to develop India as a "home" market, focusing on strategic partnerships and technology transfer across various domains.