WEB DESK: A report from the Financial Times portrays 2025 as a turbulent year for India, marked by military friction with Pakistan, economic vulnerabilities, currency struggles, and strained trade relations with the United States.
The analysis highlights how India grappled with persistent challenges throughout the year, including escalating tensions with Pakistan, stalled trade negotiations with the US, a tragic airplane crash, a weakening rupee, and amplified economic uncertainty.
It describes how India’s attempt at maintaining strategic autonomy proved ineffective, forcing the nation to juggle its relationships with major global powers: the United States, China, and Russia.
Further compounding these difficulties, the US-India trade agreement faced repeated delays amid rising American tariffs, which intensified economic strain. Meanwhile, sluggish implementation of GST reforms further curbed growth potential. The report also points out the steady depreciation of the Indian rupee against the dollar throughout the year.
Experts observe that the enduring skirmishes with Pakistan failed to translate into decisive military dominance for India but rather led to perceptible shifts in US foreign policy. They emphasize former US President Donald Trump taking credit for brokering a ceasefire and strengthening ties with Pakistan’s military leadership—events described as a diplomatic blow for India by the Financial Times.
Additionally, analysts assert that India’s diplomatic presence and economic leverage within the United States have significantly diminished, highlighting its eroding position. They caution that ongoing currency depreciation coupled with climbing oil prices could exacerbate India’s financial troubles even further.
The stalled trade deals with the US underscore vulnerabilities in India’s global economic standing. Observers note that India spent much of 2025 enduring crises rather than addressing them effectively.
Looking ahead, experts warn that India faces heightened pressures heading into 2026, as internal fragilities, regional instability, and intensifying international challenges threaten to deepen its woes.
