India Faces Crises and Economic Struggles in 2025: Financial Times

The year 2025 proved to be full of crises and difficulties for India, rather than progress or stability, says the Financial Times’ annual review.

India faced several major challenges last year:

• Military tensions with Pakistan

• Trade disputes with the United States

• A deadly aircraft accident

• Weak currency

• Economic uncertainty

Experts say India’s failure to maintain strategic independence forced it to rely on countries like the US, China, and Russia to keep relations stable.

The US-India trade agreement was delayed multiple times, and American tariffs created economic pressure on India. Limited GST reforms slowed economic growth, and the Indian rupee weakened against the dollar throughout the year.

The Pakistan-India tensions did not give India a clear military advantage. Instead, the US foreign policy shifted, with President Donald Trump taking credit for ceasefire efforts and increasing contacts with Pakistan’s military, which experts called a diplomatic setback for India.

Analysts point out that India’s economic and diplomatic capacity in the US is limited, showing its weaker position globally. Rising oil prices and the falling rupee indicate more economic difficulties ahead. Failures in US trade deals also reflect gaps in India’s global economic reputation.

Rather than solving problems, India mostly endured them in 2025. Experts warn that in 2026, internal weaknesses, regional tensions, and global pressures will continue to challenge the country.