Rural Governance based on technology.

A set of digital reforms was launched by the Ministry of Panchayati Raj (MoPR) in 2025 to transform the operations of Gram Panchayats. Panchayat is shifting towards more transparent, citizen-centric, and faster governance by implementing AI, geo-spatial mapping, apps, and digital accounting. Such initiatives promote the vision of Digital India and Atmanirbhar Bharat, because even rural citizens are not deprived in the digitalisation of India.

Outdated Urban Criteria

The government has opted to stick with the current meaning of the phrase urban areas as India plans to conduct Census 2027. Although this maintains consistency with the previous information, experts believe that the existing structure has not been successful in reflecting the fast evolving settlement patterns in the country. The urban/rural binary is steadily unbolstered and many communities are found in the incorrect classification.

A New Defence Alignment

In 2025, Saudi Arabia and Pakistan signed Strategic Mutual Defence Agreement, stating that any attack upon any of the two countries would be an attack upon both. This agreement has also raised eyebrows in New Delhi especially at a time when India has been in conflict with Pakistan. Signed soon after a huge terror attack on Jammu and Kashmir, the agreement transforms the security calculations of South Asia as well as West Asia.

Lack of Evenness of India Exports.

In the future free market India (2025) the export economy would be highly polarized. The US 25 percentage tariff on Indian imports, the recent one, reflected global trade prejudice, as well as inner country contrasting disparities. Some of the states control the export map but others are side actors and this brings about the issue on resilience and balanced growth.

Liquidity Trap in India.

The economy of India is also experiencing leadership of a liquidity trap where the economy is experiencing cheaper credit but there is low demand to borrow. The Reserve Bank of India (RBI) has already reduced policy rates by 100 basis points by February 2025. But the growth of credit is low, and business feeling depressed. This is based on the theory of economist John Maynard Keynes during the Great Depression period where low rates do not stimulate investment or consumption.