ISLAMABAD: The year 2025 emerged as a particularly challenging period forIndia according to the annual review published by the Financial Times whichdescribed it as marked by crises unfulfilled ambitions and significantsetbacks rather than stability or robust progress. The assessment pointedto a combination of persistent military tensions with Pakistan delayedtrade negotiations with the United States a devastating aviation disasterweakening of the national currency and broader economic uncertainties thatcollectively placed India under sustained pressure. These factors not onlyhindered internal growth but also exposed limitations in strategic autonomyforcing New Delhi to navigate complex relations with major global powersincluding the United States China and Russia amid ongoing regional andinternational strains.
The Financial Times emphasized that military confrontations along theborder with Pakistan dominated much of the year’s security landscape. Abrief but intense armed conflict in May triggered by an attack inIndian-administered Kashmir escalated into missile strikes and retaliatoryactions over four days before a ceasefire was reached. The episodehighlighted constraints on India’s claimed military superiority as theoutcome influenced Washington’s policy approach and underscored the risksof escalation between the two nuclear-armed neighbors. Analysts noted thatsuch tensions kept Indian leadership under constant scrutiny andcontributed to regional instability without achieving decisive strategicgains.
Economic pressures further compounded India’s difficulties with the reviewdetailing repeated postponements of a comprehensive trade agreement withthe United States. The imposition of substantial tariffs by Washingtonparticularly linked to India’s energy imports from Russia exertedconsiderable strain on export sectors and overall financial stability.These measures placed additional burdens on New Delhi’s trade balance andprompted warnings of diminished growth momentum as exporters facedheightened costs and reduced competitiveness in key markets.
The Financial Times also highlighted the depreciation of the Indian rupeewhich reached record lows against the US dollar registering a decline ofapproximately six percent over the year. This weakening exacerbated importcosts fueled inflationary concerns and reflected broader market volatilitystemming from foreign capital outflows and global trade frictions. Thecurrency’s performance stood in contrast to earlier expectations ofstability and added to perceptions of economic vulnerability despiteunderlying domestic fundamentals.
Limited progress on domestic reforms presented another layer of challengeaccording to the report. Efforts to broaden Goods and Services Taximplementation remained confined to select areas failing to deliver theanticipated boost to economic expansion. This partial approach constrainedrevenue generation and hindered the pace of structural improvementsnecessary for sustained high growth. The review suggested that suchshortcomings left India more exposed to external shocks and internalinefficiencies.
A tragic aviation incident added to the year’s somber narrative when amajor Air India flight crashed shortly after takeoff in Ahmedabad resultingin significant loss of life and prompting intense scrutiny of safetyprotocols. The disaster which claimed hundreds of lives includingpassengers and individuals on the ground amplified public and internationalconcerns over infrastructure reliability and regulatory oversight in one ofthe world’s fastest-growing aviation markets.
The cumulative impact of these events as outlined in the Financial Timesreview painted a picture of a nation grappling with interconnected crises.India’s need to balance relations with competing global powers whileaddressing domestic economic and security imperatives underscored thecomplexities of maintaining strategic independence in an increasinglypolarized world order. Looking ahead the assessment warned that unresolvedissues could intensify challenges in the coming year.
The report concluded that 2025 represented a period of endurance ratherthan advancement for India with multiple fronts testing the limits of itsresilience and policy adaptability.
Source:https://www.pakistantoday.com.pk/2026/01/01/2025-proves-to-be-year-of-failures-and-setbacks-for-india-says-report/
Tags: India, Pakistan, Financial Times, US Tariffs, Indian Rupee
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