Economic Outlook and Policy Measures
India's economic growth is a key focus, with varying projections for the fiscal year 2025-26 (FY26). Kotak Mahindra Bank projects India's GDP growth to slow down to 6.2% in FY26, attributing this to economic uncertainty caused by 25% tariffs imposed by the USA on Indian exports. High-frequency indicators also suggest a softening in economic activity and slowing credit growth. Despite this, India's economy showed resilience in FY25, supported by strong fundamentals and proactive policies, with inflation trending favorably. The Reserve Bank of India (RBI) has reportedly cut the policy repo rate by 100 basis points to 5.5% and implemented aggressive liquidity measures to stimulate growth. Deloitte India, however, projects a slightly higher economic growth of 6.4-6.7% for FY26, driven by robust domestic fundamentals and expanding global opportunities.
In terms of financial policy, significant reforms in banking laws came into effect from August 1, 2025. The minimum amount for a 'substantial interest' in banking has been increased to ā¹2 crore from ā¹5 lakh. The maximum tenure for directors in cooperative banks has been extended from 8 to 10 years. Public Sector Banks (PSBs) are now permitted to transfer unclaimed shares, interests, and bond redemption amounts to the Investor Education and Protection Fund (IEPF). Additionally, the RBI approved the merger of New India Co-operative Bank (NICB) with Saraswat Co-operative Bank, effective August 4, 2025.
GST collections in July saw a 7.5% year-on-year increase, reaching ā¹1.96 lakh crore, with imports driving much of this growth. New usage limits for UPI apps have been introduced to enhance system performance, limiting balance checks to 50 times/day and account views to 25 times/day. The Ministry of Road Transport and Highways also launched a FASTag Annual Pass for private vehicles, valid for 1 year or 200 trips, whichever comes first.
International Relations and Diplomacy
A significant diplomatic event was the state visit of H.E. Mr. Ferdinand R. Marcos Jr., President of the Republic of the Philippines, to India from August 4-8, 2025. During the visit, Prime Minister Narendra Modi and President Marcos held bilateral discussions on August 5, leading to the signing of a Declaration on the Establishment of a Strategic Partnership between India and the Philippines. This partnership aims to strengthen bilateral trade and investment, foster cooperation in infrastructure development, and facilitate customs procedures. India also extended support for a pilot project to establish the Philippines' Sovereign Data Cloud Infrastructure and offered gratis e-tourist visa facilities to Filipino nationals for one year.
India has firmly defended its imports of Russian oil amidst US pressure and tariff threats. The Ministry of External Affairs (MEA) emphasized India's commitment to strategic autonomy in its foreign policy, highlighting that other nations criticizing India are also engaging in trade with Russia. US President Donald Trump announced plans to impose further tariffs on Indian goods and secondary penalties on India's oil purchases from Russia, a move viewed as blunt coercion by New Delhi. Despite these tensions, trade negotiations between India and the United States are scheduled for August 25-29 in New Delhi.
Government Policies and Initiatives
The Maharashtra Cabinet approved a new Startup, Entrepreneurship and Innovation Policy 2025 to promote skill development and innovation across the state. The cabinet also sanctioned a new freight corridor project connecting the Vadhavan Port to the Maharashtra Samruddhi Mahamarg. In a move to boost the cooperative sector, India plans to launch a taxi service under the brand name 'Bharat' by December 2025, with an authorized capital of Rs 300 crore and 200 drivers already onboarded from Delhi, Gujarat, Uttar Pradesh, and Maharashtra.
The Ministry of Mines recognized 7 institutes, including 4 IITs and 3 R&D Labs, as Centres of Excellence (CoEs) under the National Critical Minerals Mission (NCMM). The Ministry of Petroleum and Natural Gas launched the 'Apna Ghar' initiative to provide hygienic resting facilities for truck drivers along national highways.
Key Appointments and Other News
IndusInd Bank appointed Rajiv Anand as its new Managing Director and CEO for a three-year term, effective August 25, 2025, subject to shareholder approval. This appointment has been met with positive investor sentiment. Other notable appointments include Manisha Sinha as Member (Financial Services) Postal Services Board and Binita Thakur as Additional Director General in CISF.
National Bone and Joint Day was observed on August 4, 2025, coinciding with the Indian Orthopaedic Association's charter-signing day. In sports, Hardeep Singh became India's first U17 world champion in the 110kg weight class of Greco-Roman style at the U17 World Wrestling Championships 2025 in Athens, Greece. The NASA-ISRO Synthetic Aperture Radar (NISAR) satellite was successfully launched on July 30, 2025.