National and Economic Developments: India's economic landscape continues to show robust growth, with retail inflation cooling significantly. The Consumer Price Index (CPI)-based inflation stood at 1% in June 2025, down from 2.82% in May 2025, marking the fifth consecutive month below the Reserve Bank of India's (RBI) upper tolerance limit of 4%. In response, the RBI's Monetary Policy Committee (MPC) cut the repo rate by 50 basis points, bringing it to 5.5%. Projections from Morgan Stanley indicate India will remain the fastest-growing economy, with real GDP growth forecasted at 5.9% in 2025 and 6.4% in 2026. Furthermore, India is on track to become the world's third-largest economy by 2028.
Several significant financial and administrative policy changes came into effect on July 1, 2025. Aadhaar is now mandatory for new Permanent Account Number (PAN) card applications, and Aadhaar-based OTP verification is required for Tatkal railway ticket bookings to curb misuse. Additionally, the Goods and Services Tax (GST) payment form GSTR-3B has become non-editable after filing, and a three-year time limit has been introduced for filing past GST returns. The government also launched the Prime Minister Dhan-Dhaanya Krishi Yojana, merging 36 central government schemes to enhance agricultural productivity.
In urban governance, the Swachh Survekshan 2024-25 results highlighted progress in cleanliness. Vijayawada was ranked the fourth cleanest city in India among those with a population over 10 lakh, while Mysuru joined the 'Super Swachh League'. Bengaluru significantly improved its ranking from 125th to 36th among million-plus cities. Further strengthening governance, the NSCSTI 2.0 Framework was launched to upgrade Civil Services Training in India.
Defence and Security: India achieved a significant milestone in its defence indigenization efforts with the commissioning of INS Nistar, the nation's first indigenously built Diving Support Vessel, at the Naval Dockyard in Visakhapatnam. The country also successfully test-fired the nuclear-capable Prithvi-II and Agni-I missiles, enhancing its deterrence capabilities. In a move to bolster counter-terrorism efforts, the US designated The Resistance Front (TRF) as a global terrorist organization, following India's demand for justice regarding the Pahalgam attack.
International Relations: India's External Affairs Minister, S. Jaishankar, engaged in crucial diplomatic discussions during his visit to Beijing, meeting with Chinese President Xi Jinping and Foreign Minister Wang Yi. The talks focused on stabilizing bilateral ties, addressing border issues, and enhancing economic cooperation. On the sidelines of the Shanghai Cooperation Organization (SCO) Foreign Ministers' meeting, Jaishankar also met with his Russian counterpart, Sergey Lavrov, discussing bilateral and international issues, and noting a record trade turnover between the two nations. The Indian Navy participated in SIMBEX 2025, a bilateral naval drill with Singapore, marking the 32nd edition of the exercise aimed at improving maritime cooperation and interoperability. Meanwhile, India conveyed to the European Union that it does not accept "double standards" regarding EU sanctions on a Gujarat-based refinery as part of its measures against Russia.
Science, Education, and Sports: Indian students showcased exceptional talent at the 57th International Chemistry Olympiad 2025 in Dubai, securing two Gold and two Silver medals, contributing to India's 6th global ranking among 90 participating countries. The government also announced significant policy reforms to enhance the "Ease of Innovation" and "Ease of Doing Research" by streamlining procurement processes and revising financial thresholds for research institutions. In sports, the National Sports Policy 2025 received approval.