National Developments and Policy Reforms:
On India's 79th Independence Day, Prime Minister Narendra Modi delivered an address from the Red Fort, emphasizing India's economic progress and asserting a "new normal" in national security. He stated that India would no longer differentiate between terrorists and those who support them, vowing strong retaliation against future attacks. The Prime Minister also highlighted the nation's efforts towards becoming the world's third-largest economy and discussed a new GST reform planned for October 2025, which aims to introduce two main rates (5% and 18%) with a higher 40% rate for luxury and sin goods, potentially shifting most 12% slab items to 5%. Additionally, a ā¹1 lakh crore Pradhan Mantri Viksit Bharat Rozgar Yojana was announced to create 3.5 crore jobs.
Economic Highlights:
The economic landscape saw positive movements with S&P upgrading India's sovereign rating to 'BBB' with a stable outlook on August 14, citing economic resilience and inflation control measures. The Reserve Bank of India (RBI) maintained its benchmark repo rate at 5.5% in its August 2025 Monetary Policy, reaffirming a neutral stance amidst global uncertainties, and sharply reduced its CPI inflation forecast for FY26 to 3.1%. India's foreign exchange reserves also rose by $4.7 billion to $693 billion in the week ending August 8. The nation's real GDP expanded by 6.5% in FY25, with projections of continued growth, and a significant decline in the year-on-year inflation rate to 1.55% in July 2025 was noted.
Judicial and Social Initiatives:
The Supreme Court delivered a landmark judgment on August 14, 2025, providing crucial clarity on Section 6(2)(b) of the Central Goods and Services Tax Act, 2017, concerning parallel proceedings and the 'same subject matter'. Other important judgments from August 2025 included cases related to greater gender representation in the judiciary, workplace injury compensation, and cautions against overreliance on circumstantial evidence. Socially, the 'Nasha Mukt Bharat Abhiyaan' (Drugs-Free India Campaign) successfully completed five years, sensitizing over 18.10 crore people. A state government also launched a free bus travel scheme for women, girls, and transgender persons.
International Relations and Technology:
In international relations, India continues its strategic partnership with the United States despite tariff tensions, with both nations focused on mutual respect and shared interests. Global leaders, including Russian President Vladimir Putin and French President Emmanuel Macron, extended greetings to India on its Independence Day, highlighting strengthening bilateral ties. The 3rd India-Singapore Ministerial Roundtable (ISMR) was convened in New Delhi, focusing on deepening cooperation across various sectors including advanced manufacturing and digitalization. Technologically, India has made significant strides in strengthening its semiconductor ecosystem, achieving a milestone of 100 GW of solar PV module manufacturing capacity and inaugurating advanced 3-nanometer chip design centers.
Disaster Update:
Tragically, a massive cloudburst in Indian-administered Kashmir on August 14 led to flash floods, killing at least 60 people and leaving over 200 missing in the Kishtwar district.