1. YEAR-ENDER: POLITICAL REFORMS AND ELECTIONS DEFINE INDIA’S 2025 LANDSCAPE
SUBJECT: POLITY
- In 2025, India initiated major reforms across tax, employment, and legal systems, simplifying policies to boost consumption and modernize labour laws, enhancing the economic landscape and attracting investments.
- The year saw BJP’s dominance in politics, with key Assembly elections in Delhi and Bihar reshaping the Opposition’s fortunes, alongside an unexpected Vice President poll that altered national dynamics.
- Political churn included protests, security crackdowns, and welfare pushes, with electoral experiments and tragedies highlighting shifts in governance and federalism challenges.
- In Tamil Nadu, tensions rose within the INDIA bloc as Congress MP Manickam Tagore urged DMK allies to respect alliance boundaries and avoid interfering in internal affairs ahead of 2026 polls.
- DMK expressed confidence in securing a 2026 mandate, with CM MK Stalin hailing 2025 as a landmark year for Tamil Nadu’s fight against injustice and unyielding spirit.
- Union Education Minister Dharmendra Pradhan urged Tamil Nadu to implement the National Education Policy, emphasizing Tamil as the medium of instruction up to standard five for better educational outcomes.
- Concepts: Federalism Principles – Crucial for balancing Centre-State relations in policy implementation; Electoral Reforms – Focus on inclusivity and transparency in polls like SIR.
2. TAMIL NADU BRACES FOR NEW YEAR WITH HEIGHTENED SECURITY AMID NATIONAL DEVELOPMENTS
SUBJECT: NATIONAL
- Chennai deployed over 25,000 police personnel for New Year’s Eve, closing beaches, enforcing traffic curbs, and banning certain activities to ensure peaceful celebrations across Tamil Nadu.
- Tamil Nadu government undertook a major IPS reshuffle, promoting 70 officers ahead of assembly elections, signaling preparations for 2026 polls.
- A horrific incident in Tamil Nadu saw teens assault an Odisha man and film it for social media reels, highlighting rising concerns over youth violence and digital misuse nationwide.
- Nationally, the Election Commission directed home verification for elderly, ailing, and disabled voters during SIR, following backlash, to enhance inclusivity in electoral processes.
- India’s National Frequency Allocation Plan 2025 came into effect, laying the groundwork for 6G policy and advancing telecommunications infrastructure.
- Tamil Nadu’s debt figures were analyzed, showing a 22% increase in capital outlays for 2025-26 in sectors like transport, urban development, and energy, countering misconceptions about fiscal health.
- Concepts: Disaster Management Act, 2005 – Guides state responses to public safety during events; Environmental Impact Assessment – Ensures balanced development in infrastructure projects.
3. INDIA NAVIGATES TURBULENT GLOBAL TIES AMID US TARIFFS AND REGIONAL MEDIATION CLAIMS
SUBJECT: INTERNATIONAL
- India-US relations in 2025 faced tests with tariff tensions and Operation Sindoor diplomacy, marking a shift from bonhomie to brinkmanship under Trump 2.0, impacting trade negotiations.
- China claimed mediation in India-Pakistan tensions among hotspot issues, drawing reactions in New Delhi over the bizarre assertion, while Pakistan saw major military escalation with India.
- India’s foreign policy adhered to a middle path, balancing strategic autonomy with Bharat First and Vasudhaiva Kutumbakam principles in a turbulent world order.
- Diplomatic setbacks in 2025 included strained US ties, security failures, and weakened regional influence, as highlighted in reports on India’s global positioning.
- Re-engagement with China and steadfast Russia partnership were key, alongside responses to cross-border terror and evolving US national security strategy affecting South Asia.
- Bangladesh policy recalibration was urged post-Hasina fall, testing India’s strategic maturity in neighborhood relations.
- Concepts: Non-Alignment 2.0 – Guides India’s balanced diplomacy; Indo-Pacific Strategy – Strengthens alignments for regional security amid global shifts.
4. INDIA SURGES TO FOURTH-LARGEST ECONOMY WITH ROBUST GROWTH PROJECTIONS
SUBJECT: ECONOMY
- India overtook Japan to become the world’s fourth-largest economy, with GDP at around $4.18 trillion, projected to reach $4.51 trillion per IMF estimates.
- The economy recorded high growth despite global volatility, driven by strong domestic demand, benign inflation, and healthy corporate balance sheets, as per RBI Governor.
- India is set to remain the fastest-growing large economy, aiming for $26 trillion by 2047, according to EY report, emphasizing resilience and buffers against external challenges.
- Rupee entered 2026 after its worst annual drop in three years, influenced by $18 billion foreign investor outflows, yet the economy remains sound amid persistent global issues.
- 2025 ended on a strong footing with 8.2% Q2 GDP growth, low inflation, and reforms transforming taxation and employment sectors.
- BJP countered Opposition’s ‘dead economy’ remarks by citing India’s fourth-largest status, accusing propaganda against national progress.
- Concepts: Balance of Payments – Addresses rupee depreciation and import strains; Atmanirbhar Bharat – Supports GDP momentum through production-linked incentives.
5. INDIA BOOSTS DEFENCE SELF-RELIANCE WITH KEY PROCUREMENTS AND MISSILE TESTS
SUBJECT: DEFENCE
- Indian Army achieved 91% self-reliance in ammunition, enhancing long-war endurance and battlefield success through domestic production.
- Defence production hit a record Rs 1.54 lakh crore in 2025, with exports growing 12% to Rs 24,000 crore, marking a breakthrough in manufacturing and technological confidence.
- India procured 1,000 Rafael SPICE air-to-surface missiles from Israel, strengthening armed forces capabilities as the largest customer of Israeli defence tech.
- Successful salvo launch of indigenous Pralay missiles demonstrated advanced strike capabilities, supporting indigenization efforts.
- Operation Sindoor in 2025 established a new normal in counter-terror response, involving missile strikes against Pakistan-based infrastructure following attacks.
- Defence acquisition council approved proposals worth nearly $8.8 billion for radars, radios, and other equipment to enhance armed forces.
- Concepts: Strategic Autonomy – Drives import curbs and international alliances; Defence Acquisition Procedure 2020 – Facilitates private sector involvement in indigenization.