Economic Policy and Outlook:

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, announced its latest credit policy review, keeping the repo rate unchanged at 5.5%. The stance was maintained as 'neutral'. The central bank also retained the GDP growth forecast at 6.5% for fiscal year 2025-26, while the inflation outlook for FY26 was revised downwards to 3.1%. RBI Governor Sanjay Malhotra affirmed that the banking system's Non-Performing Assets (NPA) situation is satisfactory, with net NPAs at a low 0.5–0.6%.

International Relations and Trade:

India's trade relations with the United States have faced new challenges as the US imposed an additional 25% tariff on Indian goods, effective August 7, 2025. This brings the total tariff to 50% on certain Indian exports, primarily in response to India's continued purchase of Russian oil. India has strongly condemned this move, calling it "unfair, unjustified, and unreasonable," and reiterated its commitment to safeguarding national interests. Despite these concerns, a report by the PHD Chamber of Commerce and Industry (PHDCCI) suggests that the tariff will have a minimal impact on India's economy, affecting only 1.87% of exports and 0.19% of GDP. RBI Governor Sanjay Malhotra also stated that India is contributing more to global economic growth (18%) than the US (11%).

In a significant diplomatic development, India and the Philippines have elevated their bilateral relationship to a strategic partnership. This announcement followed a five-day state visit by Philippine President Ferdinand R. Marcos Jr. to India, during which 13 agreements and Memoranda of Understanding (MoUs) were signed, including cooperation between the armed forces of both nations.

Governance and Digital Initiatives:

The Ministry of Electronics and Information Technology has stated that Aadhaar face authentication will enhance transparency and accountability in competitive examinations. The Staff Selection Commission (SSC) and the Railway Recruitment Board (RRB) are already authorized to utilize this feature.

The Reserve Bank of India's Financial Inclusion Index (FI-Index) has risen to 67 in 2025, demonstrating progress in extending financial services to a broader population, particularly through initiatives like the Pradhan Mantri Jan Dhan Yojana.

In a technological advancement for education, IIT Palakkad has rolled out 'Tutoz,' India's first Artificial Intelligence (AI)-powered learning application. This app is designed to assist students preparing for competitive exams such as JEE, NEET, and CAT.

Key Appointments:

Several significant appointments have been made across various sectors. Rajiv Anand has been appointed as the Managing Director and CEO of IndusInd Bank for a three-year term. Additionally, P.B. Balaji has been named the first Indian CEO of Jaguar Land Rover. The government also announced key bureaucratic appointments, including Manoj Govil as Secretary (Coordination) in the Cabinet Secretariat, Ajay Kumar Jaiswal as Chief Vigilance Officer (CVO) for Northern Coalfields Ltd, and Manisha Sinha as Member (Financial Services) in the Postal Services Board. Furthermore, judicial and technical members have been appointed to the Goods and Services Tax Appellate Tribunal (GSTAT) to expedite the resolution of GST disputes.