India-UK Forge Stronger Economic and Strategic Partnership
A landmark moment in India's foreign policy has been the signing of the India-UK Free Trade Agreement (FTA) and the endorsement of the "India-UK Vision 2035" on July 24, 2025. This comprehensive agreement aims to significantly boost bilateral trade, with Union Minister for Commerce and Industry Piyush Goyal terming it "game-changing" and beneficial for all sections in India, including farmers, youth, and the MSME sector. The agreement is expected to double bilateral trade to $112 billion by 2030, with 99% of Indian exports to the UK set to face zero tariffs. India has also secured duty concessions for certain UK goods while protecting sensitive domestic sectors like mid and small cars and low-priced electric vehicles. The "India-UK Vision 2035" outlines a strategic roadmap built on five pillars: Growth, Technology, Defence, Climate, and Education, with annual reviews planned by the External Affairs Minister of India and the UK Foreign Secretary to ensure dynamic and aligned strategic interests.
India-Maldives Relations Deepen with Key Agreements
Prime Minister Narendra Modi's visit to the Maldives on July 25th and 26th, 2025, marked a significant step in strengthening bilateral relations. During his visit, India and Maldives signed multiple agreements, launched projects, and released commemorative stamps, reinforcing cooperation in trade, infrastructure, defence, climate action, and digital cooperation, commemorating 60 years of diplomatic relations. PM Modi reiterated India's commitment to further deepen ties in keeping with its "Neighbourhood First" and Vision MAHASAGAR policies. The Maldivian President, Mohamed Muizzu, expressed gratitude for India's "pivotal" economic assistance and its role as a "First Responder" during crises.
Economic Landscape: Growth Projections, Gold Surge, and Financial Reforms
India's economic outlook for Fiscal Year 2025-26 remains encouraging, with the Reserve Bank of India (RBI) projecting a real GDP growth of 6.5%, supported by strong domestic demand and government capital expenditures. Meanwhile, gold prices in India have soared to near-record highs in July 2025, with MCX August futures touching ā¹100,555 per 10 grams. This surge is attributed to global market dynamics, currency fluctuations (depreciating rupee), and sustained demand in India and China, alongside gold's appeal as a safe-haven asset amidst geopolitical tensions.
New financial rules came into effect from July 1, 2025, impacting businesses and individual taxpayers. These include tightened GST return filing rules, making GSTR-3B non-editable after submission, and a three-year time limit for filing past GST returns. Additionally, Aadhaar has been made mandatory for new PAN cards. For central government employees and pensioners, the July 2025 Dearness Allowance (DA) hike is anticipated to be the final one under the 7th Pay Commission, with an announcement expected around October.
Defence, Security, and Other Key Developments
In defence, India remains vigilant regarding China's aim to become a "maritime power" and closely monitors developments in the Indian Ocean Region. Operation Sindoor continues, emphasizing uninterrupted military readiness. India successfully test-fired a drone-launched precision-guided missile. Exercise Bold Kurukshetra 2025, aimed at advancing India-Singapore defence cooperation, is set to commence. The nation also commemorated the 26th anniversary of Kargil Vijay Diwas on July 26, paying tribute to the armed forces' valor.
Other notable events include the honoring of 17 Members of Parliament with Sansad Ratna Awards 2025 for their exemplary performance. President's Rule in Manipur was extended for another six months. The National Cooperative Policy ā 2025 was unveiled to revitalize India's cooperative movement. The "My Panchayat App" received the WSIS Champion Award 2025 in Geneva, Switzerland. The Green Hydrogen Summit 2025 was held in Amravati. ISRO's "NISAR" launch from Sriharikota is expected to enhance international collaborations in space technology.