India's economic prowess continues to garner international recognition, with the International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, hailing the nation as a "key growth engine" for the global economy. She emphasized India's resilience, noting its impressive 7.8% real GDP growth in Q1 of FY 2025–26, surpassing the RBI's earlier estimates. This growth is attributed to a revival in consumption and recent GST rate reductions, even as the global economy grapples with trade tariffs, including those imposed by the US.

Further underscoring this positive outlook, UK Prime Minister Keir Starmer, during his recent visit, declared that India is "on track to becoming the third largest economy by 2028," envisioning it as an "economic superpower in the making." Starmer highlighted the UK's desire to partner with India on this journey, particularly in technology and trade, as bilateral discussions focus on strengthening ties and exploring new opportunities.

On the domestic front, India is making significant strides in financial innovation. Prime Minister Narendra Modi announced that India is preparing to launch its own digital currency, backed by the Reserve Bank of India (RBI). This initiative aims to make financial services faster, safer, and more accessible to all citizens, further strengthening India's economic growth story. The plan also incorporates Artificial Intelligence (AI) into financial systems to detect fraud and improve banking services, with India set to host the AI Impact Summit.

In a move to streamline and foster a more trust-based tax regime, NITI Aayog has proposed a major overhaul of India's tax enforcement framework. The proposal suggests a significant reduction in tax offenses under criminal provisions, aiming to retain criminal liability only for willful and high-value evasion.

Other notable developments include a slight dip in India's foreign exchange reserves, which stood at $699.96 billion for the week ending October 3, down from $700.24 billion the previous week. Meanwhile, the automobile sector continues its robust growth, with Union Minister Nitin Gadkari announcing that India's auto industry has surged to ₹22 lakh crore, surpassing Japan to become the world's third-largest automobile market. He expressed optimism for India to become a global leader in auto manufacturing within five years through advancements in research, innovation, and alternative fuels.

In banking news, SBI has scheduled maintenance on October 11, which will affect services such as UPI, IMPS, NEFT, RTGS, and YONO. Punjab National Bank (PNB) has also announced a festive offer, providing car loans from 7.85% with zero processing fees and no prepayment charges.