India Upgrades Diplomatic Presence in Afghanistan, Resumes Development Projects
In a significant diplomatic move, India has announced the upgrading of its technical mission in Kabul to the status of an embassy, signaling a new approach in its ties with Afghanistan. External Affairs Minister S. Jaishankar made the announcement following wide-ranging talks with visiting Afghan Foreign Minister Amir Khan Muttaqi on October 10, 2025. This development marks India's first high-level diplomatic engagement with the Taliban administration since their takeover in 2021.
During the discussions, India also committed to restarting its development projects in Afghanistan, with Jaishankar appreciating the Taliban setup for showing sensitivity towards New Delhi's security concerns. India is ready to commit to six new projects, details of which are expected soon, and also extended a goodwill gesture by gifting 20 ambulances. The Afghan Foreign Minister, Amir Khan Muttaqi, is on his maiden visit to India, marking the first time a senior Taliban official has visited the country since 2021. This move reopens the embassy that was closed in 2021 following the withdrawal of US-led NATO forces, though India has not yet formally recognized the Taliban government.
Strengthening India-UK Strategic Partnership with New Initiatives and Defense Deal
India and the United Kingdom have reinforced their strategic partnership with the launch of several key initiatives. This includes the establishment of an India-UK Connectivity and Innovation Centre and an India-UK Joint Centre for AI. A Technology Startup Fund was also launched under a UK-India MoU with the State Bank of India (SBI) to support entrepreneurs in sectors like climate technology and AI.
Further solidifying bilateral cooperation, India and the UK finalized a ā¹4,154 crore defense agreement for the supply of Martlet lightweight multirole missiles. This deal is expected to enhance India's tactical capabilities and strengthen defense ties. These developments coincided with UK Prime Minister Keir Starmer's visit to India, where he met with Prime Minister Narendra Modi to strengthen cooperation across various sectors, including defense, climate, energy, and maritime security.
Economic Outlook and Domestic Policy Initiatives
Union Minister for Road Transport and Highways, Nitin Gadkari, reiterated India's ambitious target of achieving a USD 5 trillion economy by 2027 and transforming into a developed nation by 2047. He highlighted the substantial growth in the automobile sector, which has surged to ā¹22 lakh crore, surpassing Japan to become the world's third-largest automobile market. Gadkari emphasized the importance of alternative fuels like ethanol, methanol, and electric vehicles to reduce crude oil imports and foster economic growth.
In other economic news, India's foreign exchange reserves saw a slight dip, standing at $699.96 billion for the week ending October 3, down from $700.24 billion the previous week. The Reserve Bank of India (RBI) continues to monitor the foreign exchange market to ensure stable trading conditions.
Domestically, Prime Minister Narendra Modi is set to launch two crucial agricultural initiatives: the PM Dhan-Dhaanya Yojana and the Self-Reliance in Pulses Mission, aimed at boosting India's pulses production. Additionally, the Supreme Court has reserved its order on pleas seeking permission to manufacture and sell green firecrackers in the Delhi-NCR region.