In the face of shifting global growth trends, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), has praised India as a major global economic growth engine.

Over the longer term, global growth is expected to be about 3%, which is lower than the 3.7% growth rate prior to the pandemic. Over time, global economic patterns have been shifting, with China gradually slowing down and India emerging as a major development engine, according to the IMF chief.

Georgieva’s remarks preceded the annual gathering of central bank governors and finance ministers with the World Bank and IMF in Washington next week.

According to Georgieva, nations have implemented firm economic policies, the private sector has adjusted, and the US tariff crisis has turned out to be less serious than first anticipated.

However, she stated that “global resilience has not yet been fully tested,“ therefore it was too soon to breathe a sigh of relief. There are worrying indications that the test might be forthcoming.

Georgieva stated that “all signs point to a world economy that has generally withstood acute strains from multiple shocks,” citing “improved policy fundamentals,” the private sector’s flexibility, lower-than-expected tariffs, and favorable financial conditions.

She pointed out that although the US effective tariff rate of about 10% is still “far above” the rest of the world, the US tariff rate has decreased from 23% in April to 17.5% today.

However, she cautioned that the full impact of those tariffs “is still to unfold,” and that the global economy’s resilience has not yet been “fully tested.”

In the meantime, India’s growth estimate for FY26 was increased by the World Bank on Tuesday from 6.3% to 6.5%. In the April–June quarter, India’s GDP growth surged to a five-quarter high of 7.8%.

Reserve Bank Governor Sanjay Malhotra announced last week that the RBI has increased its forecast of India’s GDP growth rate from 6.5% to 6.8% for 2025–2026. This is because the implementation of a number of structural reforms that will spur growth, such as simplifying the GST, is anticipated to mitigate some of the negative effects of the external headwinds.

He noted that high private consumption and fixed investment were the main drivers of India’s GDP‘s 7.8% growth in Q1 2025–2026. On the supply side, a resurgence in manufacturing and consistent growth in services drove the 7.6% increase in gross value added (GVA).

High frequency indicators that are now available indicate that economic activity is still robust. According to the RBI Governor, urban demand is gradually increasing while rural demand is still high due to a healthy monsoon and active agriculture.

India is currently the third-largest generator of solar energy in the world, with over 125 GW of solar capacity, said Minister of New and Renewable Energy Pralhad Joshi.

The minister stated during the curtain-raiser event for the 8th session of the International Solar Alliance (ISA) assembly, which is set for October 27–30 in the nation’s capital, that India has achieved its renewable energy targets five years ahead of schedule and has surpassed the 50% threshold in total installed electricity capacity from non-fossil resources thanks to its clear vision and consistent policies.

With 124 Member and Signatory Countries, ISA is the largest treaty-based intergovernmental organization from the Global South. It was introduced by France and India at COP21 in Paris.

Weeks before COP30 in Brazil, this high-level ministerial meeting is establishing goals for developing skill ecosystems, unlocking transformative finance, scaling solar energy, and mapping out technological and policy roadmaps in order to expedite a fair and equitable energy transition.

“India’s success narrative is about the people, not just the numbers. We have personally witnessed how decentralized solar changes lives, illuminates remote houses, supplies energy to nearby medical facilities, and equips our farmers with new equipment. More than 20 lakh families are using solar power thanks to the PM Surya Ghar Muft Bijli Yojana, Joshi said.

He added that “we are taking this transformation to the heartland of India” as part of the PM-KUSUM program.

The three parts of the plan aim to solarize 3.5 million grid-connected agricultural pumps, support 1.4 million off-grid solar pumps, and install 10 gigawatts of tiny solar plants. By working together, these initiatives are making sure that clean energy gets to the final mile. India’s energy revolution is characterized by this mix of inclusivity and scale, the minister said.

We are currently the third largest renewable energy installation in the world, ranking third in solar power and fourth in wind power, according to Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy.

Furthermore, we are the second-largest producer of solar modules, after China. In addition to solar modules, we also manufacture green hydrogen, which is essential to our energy security. We are working toward our target of producing roughly 5 million tons of green hydrogen by 2031,” he said.

The Director General of ISA, Ashish Khanna, asserts that the world’s renewable energy is reaching a turning point.

Renewable energy doubled that in just two years, but oil took 25 years to achieve 1,000 GW. Renewable energy has overtaken fossil fuels for the first time. “This is a critical time for the Global South to take the lead,” he continued.

State Bank of India (SBI) Chairman CS Setty said on Wednesday that the bank is working on simplifying the Know Your Customer (KYC) and re-KYC processes to make them more user-friendly.

He added that SBI will collaborate closely with the government and authorities to implement these improvements while addressing media on the sidelines of Global Fintech Fest 2025.

“We’re trying to make KYC procedures simpler. Setty told reporters, “We are taking the initiative from SBI’s side to make the entire KYC process easier, even if it means interacting with regulators and the government.”

He went on to say, “I believe banks like SBI are well-versed in acquisition and financing.”

Given the extended transition period provided by the central bank, he said, the move to an asset provisioning system based on expected credit loss (ECL) will not have an effect on bank balance sheets.

“We are technologically prepared in terms of models and everything; perhaps some modifications are needed in light of the final guidelines that have been guaranteed, but more significantly, given the extended transition period, we anticipate that the impact on the banks’ balance sheets will be minimal,” he continued.

As more people join the official banking network, Setty emphasized the need for a more straightforward KYC mechanism.

According to him, in order to improve inclusivity, all parties involved—including legislators, fintech firms, and software developers—must cooperate to expedite KYC processes.

The Reserve Bank of India (RBI) updated its KYC regulations on June 12 of this year in an effort to provide the procedure more flexibility.

The new rules mandate that banks provide prior notice of KYC deadlines and permit Business Correspondents (BCs) to assist clients with KYC updates.

Additionally, the RBI had observed a significant backlog in KYC updates for accounts associated with government programs like the Pradhan Mantri Jan-Dhan Yojana (PMJDY), Electronic Benefit Transfers (EBT), and Direct Benefit Transfers (DBT).

Regarding lending on digital platforms, Setty stated that before adding more credit products to the Unified Payments Interface (UPI), SBI must improve its loan collection system.

“Before releasing additional items on UPI, we must perfect the collection piece. It’s an extremely effective instrument and a crucial component of inclusive credit for individuals,” he stated.

In collaboration with the Ministry of Finance, the Institute of Economic Growth (IEG) successfully finished the fourth edition of the Kautilya Economic Conclave (KEC 2025), the ministry announced Monday.

On October 3, Union Finance Minister Nirmala Sitharaman officially opened the KEC 2025.

Senior policymakers, economists, business executives, and academics convened for three days to discuss methods to achieve robust, inclusive growth in the face of increased global uncertainty.

The Union Finance Minister emphasized in her speech that a potent confluence of circumstances has led to India’s emergence as a stabilizing influence in these troubled times, which is not coincidental nor temporary.

With the steady share of investment and consumption in the overall GDP over the years, Sitharaman noted that India’s growth is firmly anchored in its domestic factors, which minimizes the impact of external shocks on overall growth. She also emphasized the government’s consistent efforts over the past ten years towards fiscal consolidation, improved quality of capital expenditure, and reining in inflationary pressures.

Through plenary sessions, interactive panels, and special lectures, participants engaged in deep conversations over the course of three days.

The necessity of maintaining stable inflation control, maintaining exchange rate discipline, and protecting financial stability from worldwide swings in the price of commodities and oil were all emphasized in the macroeconomic resilience workshops.

With talks on artificial intelligence, 5G communications, and digital finance pointing to new opportunities for global collaboration, the debate on digital public infrastructure and technology highlighted India’s leadership in creating inclusive systems.

Another topic of discussion was trade and global fragmentation, with specialists looking at the difficulties presented by protectionist tendencies and supply chain rewiring.

In addition, former European Central Bank President Jean-Claude Trichet gave a special speech at KEC 2025 titled “What Europe Can Learn from the Indian Federation,” which drew conclusions about Europe’s integration issues from India’s federal fiscal structure.

On October 5, Union Minister of External Affairs Dr. S. Jaishankar gave a closing speech during which he discussed India’s external economic position in a world that is becoming more fragmented.

On the penultimate day of the conclave, Jyotiraditya Scindia, the Union Minister of Communications and the Minister for Development of the North Eastern Region, gave a speech on “Emerging Technologies.”

The KEC 2025’s major takeaway was unambiguous: India’s growth story is still strong, but maintaining faster growth in the long run will necessitate further structural changes and fortifying external alliances, the ministry stated.

The first “Made in India” Airbus H125 helicopter is anticipated to be delivered in early 2027 and will also be available for export throughout South Asia, the company said Wednesday.

To construct the Airbus H125 helicopters, Tata Advanced Systems Limited (TASL) will set up India’s first private sector helicopter Final Assembly Line in Vemagal, Karnataka.

The action should help the rotorcraft market in South Asia reach its maximum potential.

India is the perfect place for helicopters. According to Jurgen Westermeier, President and Managing Director of Airbus India and South Asia, a “Made in India” helicopter will contribute to the growth of this market and establish helicopters as a vital instrument for nation-building.

Westermeier stated, “We are very happy to be adding this new chapter to our multifaceted relationship with our trusted partners Tata.”

In addition to meeting the Indian military’s need for a lightweight multirole helicopter, particularly on the frigid heights of the nation’s Himalayan borders, the “Made in India” H125 helicopter will aid in the development of new private and parapublic market segments.

The H125M, a military variant with a large percentage of indigenous parts and technologies, is planned to be sold from this Indian plant.

“Tata Advanced Systems takes pride in being India’s first commercial sector helicopter manufacturer. Both civil and defense requirements will be strengthened as a result.

Sukaran Singh, CEO and Managing Director of Tata Advanced Systems Limited, stated, “This is our second FAL in partnership with Airbus and further strengthens the partnership between Tata and Airbus for India.”

According to him, Tata Advanced Systems is ideally positioned in the Indian aerospace industry and can produce and supply both fixed-wing aircraft and helicopters to meet the needs of the country.

India’s aviation sector will expand thanks to this project, particularly in civil and defense applications.

Important services, including emergency medical flights, disaster relief, tourism, and law enforcement, can be provided by the “Made in India” H125 helicopters.

New rules for small company loans were released by the Reserve Bank of India (RBI), giving banks more leeway in determining how much extra interest or spread to charge over the course of the loan.

The Reserve Bank of India has also loosened lending regulations for companies that use gold as a raw material.

The acquisition of gold or silver in any form, as well as lending secured by primary gold or silver, are generally forbidden for banks. However, the statement stated that Scheduled Commercial Banks (SCBs) have been given permission to issue working capital loans to jewelers.

Previously, banks could only adjust the spread associated with a borrower’s credit risk once every three years when it came to commercial loans.

In order to help borrowers, banks are now permitted to lower additional spread components before the three-year period under the new regulation. At the time of reset, borrowers will also have the choice to convert to a fixed-rate loan.

The jewelry industry, which previously had few exceptions for financing the purchase of gold and silver, is now able to receive credit through working capital loans from banks to any business that uses gold as a raw material.

Three of the RBI’s seven directives for lenders are required, while the remaining four are available for discussion. The RBI has until October 20 to receive input on these initiatives.

The central bank has extended the accessibility of credit by increasing the involvement of smaller urban cooperatives in lending.

Additionally, capital regulations have been relaxed, allowing banks to employ overseas rupee and foreign currency bonds as Additional Tier 1 capital, which facilitates access to international markets.

Credit Institutions (CIs) were required by the RBI’s directive to submit credit information to Credit Information Companies (CICs) every two weeks or less frequently.

The RBI has now suggested that CIs submit credit information to CICs once a week.

According to the statement, the draft amendments also call for actions to speed up data reporting and error correction by the CIs.

Additionally, it is suggested that the Central Know Your Customer (CKYC) number be included in a distinct section in the consumer segment’s reporting format in order to make it easier for CICs to aggregate credit data, the announcement stated.