Looking back, cutting through the noise and clutter, 2025 was a decent year for Prime Minister Narendra Modi on the home front. Politically, the Bharatiya Janata Party managed to wrest Delhi from the Aam Aadmi Party, and its victory in Bihar was nothing short of spectacular. The government managed to pass many important, sometimes contentious, Bills in Parliament, such as the Waqf (Amendment) Act and liberalisation in Foreign Direct Investment (FDI) in insurance, and private participation in the nuclear power sector.

On the economic front, India clocked a Gross Domestic Product (GDP) growth of 6.6 per cent in the calendar year, which is expected to exceed the 7 per cent threshold in the fiscal year, as per various estimates. The reforms on Goods and Services Tax – or GST 2.0, as it is being called – were a bold move. Inflation was at one of its lowest levels since 2019, and unemployment statistics are showing a drop. All in all, a satisfactory run.

India and PM Modi’s main challenges came from international quarters. The Pahalgam terror attack in April was a turning point. Though Operation Sindoor was a resounding success militarily, it did not yield a commensurate foreign policy dividend. The considerations or circumstances that led to the sudden declaration of a ceasefire may never be known. But even more curious was the ensuing hugfest between Pakistan’s military leadership and the President of the United States (US).

What was most unexpected, however, was the sudden hardening of the US position on the trade deal with India, leading to the raising of tariffs on India to a........

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