India faced failures and setbacks in 2025: Financial Times

ISLAMABAD: The Financial Times’ annual review for 2025 describes the year as one marked by failures and setbacks for India, citing sustained economic, diplomatic, and strategic pressures rather than stability or substantial progress.

According to Radio Pakistan, the report showcases how India has remained under strain throughout the year due to Pakistan-India military tensions, trade confrontations with the United States, a deadly aircraft accident, currency weakness, and growing economic uncertainty.

The report said India’s pursuit of strategic autonomy faltered, forcing New Delhi to simultaneously balance relations with the United States, China, and Russia. This challenge added to diplomatic and policy pressures.

On the economic front, the Financial Times noted repeated delays in finalizing a United States-India trade agreement. The imposition of American tariffs further increased economic stress, while the limited implementation of goods and services tax reforms constrained growth. The report added that the Indian rupee continued to depreciate against the United States dollar during 2025.

Experts cited in the review said the long-term outcome of Pakistan-India tensions did not translate into Indian military dominance. Instead, they pointed to a visible shift in Washington’s approach, which the Financial Times described as a diplomatic setback for India.

They noted that United States President Donald Trump publicly took credit for facilitating a ceasefire, while increased contacts between Washington and Pakistan’s military leadership altered regional diplomatic dynamics.

The newspaper quoted analysts saying India’s economic and diplomatic space in the United States narrowed significantly during the year, reflecting what they described as a weakened position. They warned that further depreciation of the rupee and rising global oil prices could intensify India’s economic difficulties.

The review also highlighted that the failure to conclude a United States-India trade agreement exposed gaps in India’s global economic credibility. Analysts said that throughout 2025, India appeared to be managing persistent challenges rather than resolving them.

Experts quoted by the Financial Times said that against a backdrop of internal weaknesses, regional tensions, and mounting global pressures, 2026 is shaping up to be an even more challenging year for India.