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2025: India’s Year of Contrasts

7 0
30.12.2025

The year 2025 in India was marked by a blend of political continuity and adaptation following the previous year’s general election, continued focus on infrastructure-led economic growth, and significant developments in the sensitive Union Territory of Jammu and Kashmir (J&K). The nation navigated global economic headwinds while pursuing its ambitious goal of becoming a developed nation by 2047 (Viksit Bharat).

The national political environment in 2025 was defined by the working of the National Democratic Alliance (NDA) government, which, having secured a third term, operated as a coalition needing a careful balancing act between the core agenda of the leading party and the regional interests of its allies. The ruling party won the much sought after election in Delhi in February making a significant shift in the capital’s political landscape. This was followed by a sweeping victory in the Bihar elections beyond anybody’s expectation.

The government’s policy focus remained heavily skewed towards infrastructure investment and social welfare schemes. The Union Budget for FY2025-26 continued the emphasis on capital expenditure (CapEx), aiming to crowd in private investment and boost job creation. India entered 2025 as the fastest-growing major economy, with strong forecasts despite global uncertainty. There was a robust GDP growth with leading institution, including the Asian Development Bank (ADB) and various global financial firms, projected India’s economic growth for FY2025-26 in the range of 6.5% to 7.2%. This growth was primarily driven by strong domestic consumption (supported by measures like tax cuts), a rebounding agricultural sector following favourable monsoons, and the continued push for........

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