The year 2025 in India was marked by a blend of political continuity and adaptation following the previous year’s general election, continued focus on infrastructure-led economic growth, and significant developments in the sensitive Union Territory of Jammu and Kashmir (J&K). The nation navigated global economic headwinds while pursuing its ambitious goal of becoming a developed nation by 2047 (Viksit Bharat).
The national political environment in 2025 was defined by the working of the National Democratic Alliance (NDA) government, which, having secured a third term, operated as a coalition needing a careful balancing act between the core agenda of the leading party and the regional interests of its allies. The ruling party won the much sought after election in Delhi in February making a significant shift in the capital’s political landscape. This was followed by a sweeping victory in the Bihar elections beyond anybody’s expectation.
The government’s policy focus remained heavily skewed towards infrastructure investment and social welfare schemes. The Union Budget for FY2025-26 continued the emphasis on capital expenditure (CapEx), aiming to crowd in private investment and boost job creation. India entered 2025 as the fastest-growing major economy, with strong forecasts despite global uncertainty. There was a robust GDP growth with leading institution, including the Asian Development Bank (ADB) and various global financial firms, projected India’s economic growth for FY2025-26 in the range of 6.5% to 7.2%. This growth was primarily driven by strong domestic consumption (supported by measures like tax cuts), a rebounding agricultural sector following favourable monsoons, and the continued push for government capital expenditure. However, this growth is shadowed by controversies over data reliability, specifically discrepancies between low inflation figures and high nominal growth, leading to some economists to question the magnitude of real growth and concerns about job creation and inequality despite headline figures. A GST cut lowering of 1-5%, before the Diwali festival, with a cut on some food items and healthcare products and some construction materials gave some symbolic relief.
Air pollution which has become a perennial problem has not received the attention it needs. The answer is not a blame game, everybody including the ruling Government has to take the responsibility. Measures like what China did in 2013, a time bound comprehensive approach with multi-pronged strategy and drastic measures is the only way to go. Shying away from discussing this issue as happened in the winter session of the Parliament is an ostrich like attitude.
Focus on J&K
For the Union Territory of Jammu and Kashmir, 2025 was a year of mixed developments, characterized by security challenges, infrastructure completion, and efforts toward greater administrative integration.
The inauguration of the Sonamarg Tunnel in January was a landmark event. This all-weather tunnel drastically improved connectivity between the Kashmir Valley and Ladakh, a critical element for both local economic activity and defence logistics. The J&K Budget for 2025-26 focused on social schemes and entrepreneurship. Key policy initiatives included the launch of Mission YUVA to create employment and enterprises, a digital health records system via the SEHAT app with on line consultations, and the introduction of free public transport for women on government-owned buses from April 2025, aimed at enhancing financial and physical autonomy.
In a push to promote normalcy and tourism, J&K hosted several large-scale events, including the annual Tulip Festival in Srinagar and the first-ever International Dangal and Rustam Title wrestling championship in Jammu, showcasing the region’s commitment to cultural revival and sporting engagement. On the front of education almost every district of the UT has a medical college. An All-India Institute of Medical Sciences is coming up in Awantipora, Pulwama. The new Engineering colleges in Ganderbal, Baramulla and a private institute of Technology in Srinagar are the valued additions of 2025.
The year saw significant security challenges, notably the Pahalgam attack in April, where terrorists targeted innocent tourists, resulting in casualties. This attack prompted a strong counter-response, including a major security and military push. India’s subsequent military actions, codenamed Operation Sindoor, aimed at targeting terrorist infrastructure across the Line of Control (LoC), marking a strategic shift in retaliatory posture and leading to a brief but intense standoff with Pakistan. The operation also revealed times have changed in warfare. Air supremacy is the key. The tactical collaboration of Pakistan with China, Turkey and an understanding with Saudi Arabia is likely to change our muscular policy. Pahalgam carnage led to a substantial fall for the tourism industry which was booming till April. The recent busting of a gang of doctors belonging to Kashmir, who had led to the blast outside the Red Fort unfortunately brought in J and K into controversy again. This has led to a sustenance of poor tourism.
The much-awaited restoration of the statehood after the elections to the assembly in 2024 has not come in the year gone. It is possibly because of security and administrative reasons and the Centre’s very cautious political calculus which is keeping Jammu Kashmir in limbo politically. The news in the corridors in Kashmir regarding the present elected Government fulfilling the promises on which it came is pathetic. It is more than one year since Omar Abdullah assumed the office of Chief Minister nothing substantial except for deciding to resume the durbar move which was appreciated by most and agreed by the LG. The core issues of restoration of 370, release of unjustified arrests of young men and return of statehood which brought NC back seem to have been put on the back burner. Blaming the Governor for ignoring his ministry on most important issues and not allowing them to do any constructive work is not convincing. If this is actually the case then it would be better for him to resign in disgust and protest. It would at least get him much needed projection throughout the country especially and discussion in the highest seat of democracy – the Parliament. It is hoped that 2026 will usher in more confidence on both the sides leading to more power to the elected government and accelerate the on-going development further.
Overall, 2025 stood as a period of consolidation for India—politically managing a coalition mandate, economically maintaining a high-growth trajectory, and strategically reinforcing its position, particularly through sensitive and high-stakes developments in Jammu and Kashmir. The elected Government there needs to wake up from a slumber.
Prof Upendra Kaul, Founder Director Gauri Kaul Foundation