Economic and Financial Developments:
India's economic landscape continues to exhibit resilience amidst global challenges. Retail inflation, as measured by the Consumer Price Index (CPI), eased to 2.1% in June 2025, although core inflation saw a slight uptick to 4.4%. The Finance Ministry's latest report indicates a "cautious optimism" regarding the Indian economy, projecting a GDP growth rate in the range of 6.2% to 6.5% for FY26. This positive outlook is underpinned by robust domestic demand and increased capital expenditure by the Centre, which reached 20% of the FY26 target by May. Goods and Services Tax (GST) collections also witnessed a healthy rise of 11.8% in Q1 FY26.
The Reserve Bank of India (RBI) is not expected to implement further rate cuts unless significant downside risks to growth emerge. In a notable move, the RBI announced a ₹32,000 crore bond switch auction and a ₹25,000 crore Government Securities (G-Secs) buyback auction in July. In the digital payments sphere, the Unified Payments Interface (UPI) has been updated to allow credit lines starting August, with a framework for UPI chargebacks under discussion. The Digital Rupee (e₹) has also seen increased adoption, with retail and wholesale transactions crossing ₹1,015 crore. The Insurance Regulatory and Development Authority of India (IRDAI) is set to introduce an Internal Insurance Ombudsman in all insurance companies to enhance policyholder protection.
Furthermore, Foreign Direct Investment (FDI) inflows into India rose by 14% in FY25 compared to FY24, indicating continued investor confidence. For central government employees, the July 2025 Dearness Allowance (DA) increase will be the final hike under the 7th Pay Commission, expected to be credited around October. The Unified Pension Scheme (UPS) has seen over 31,555 central government employees opt-in by July 20, with the deadline extended to September 30, 2025.
International Relations and Diplomacy:
India's diplomatic engagements have been robust. A landmark Free Trade Agreement (FTA) was signed between the UK and India, aimed at lowering tariffs and boosting investment. This agreement is part of a broader 'UK-India Vision 2035' to deepen cooperation in defence, security, technology, and education. Relations with the Maldives have significantly strengthened, with India signing six Memoranda of Understanding (MoUs) across various sectors including fisheries, digital public infrastructure, and UPI. India also extended a Line of Credit worth Rs. 4,850 crore and agreed to reduce the Maldives' annual debt repayment by 40%. Prime Minister Modi's participation as the Guest of Honour at the Maldives' 60th Independence Day celebrations underscored this renewed partnership.
On the security front, the 14th edition of the joint military exercise 'Bold Kurukshetra' between India and Singapore commenced in Jodhpur on July 28. External Affairs Minister S. Jaishankar clarified in the Lok Sabha that the India-Pakistan ceasefire, following 'Operation Sindoor' against terror bases, had no linkage to U.S. trade, emphasizing that cross-border attacks will now elicit an "appropriate response" from India.
National Policy and Other Significant News:
President Droupadi Murmu completed three years in office on July 28, marking the occasion with various initiatives. In a key appointment, Anuradha Thakur, Secretary of the Department of Economic Affairs, was appointed as a Director on the RBI's Central Board. Tamil Nadu will establish India's first Centre of Excellence for Hornbill Conservation at the Anamalai Tiger Reserve. Bihar Chief Minister Nitish Kumar announced a hike in journalists' monthly pension to ₹15,000. Panaji was declared the Cleanest City in the Swachh Survekshan 2024–25.
The Defence Research and Development Organisation (DRDO) successfully conducted flight trials of ULPGM-V3. India is also finalising a Green Steel Procurement Policy, mandating 25% public steel purchases from low-emission sources. The Delhi government released its draft Industrial Policy 2025-35, proposing a ₹400-crore venture capital fund for emerging technologies. Furthermore, the government has given statutory backing to the National Crisis Management Committee (NCMC) under the amended Disaster Management Act, 2025, making it the apex decision-making body for national disaster response.
In sports, 19-year-old Divya Deshmukh made headlines by winning the FIDE Women's Chess World Cup 2025.