India Weekly Update (June 8–14, 2025): Tragedy, Policy Shifts & Groundbreaking Infrastructure Push

Last week, India witnessed a complex mix of heartbreak, reform, and bold developmental moves. From the tragic crash of Air India Flight 171 to game-changing economic shifts by the RBI, and from climate extremes to transformative solar and highway projects—every headline carries weight. In this weekly update (June 8–14, 2025), we walk you through the nation’s most impactful events, steering clear of entertainment and focusing on what truly shapes lives, policy, and the nation’s future.

Air India Flight 171 Crash in Ahmedabad

• The devastating crash of Air India Flight 171 on June 12 shortly after takeoff from Ahmedabad claimed 274 lives, with only one survivor. The tragedy has thrust India’s aviation sector into scrutiny, exposing issues like pilot shortages, aging infrastructure, and airline safety standards. Investigators are exploring causes ranging from engine failure to potential cyberattacks. This incident has reignited discussions around modernizing airport facilities and reinforcing safety protocols.

RBI Cuts Policy Rate & CRR Significantly

• On June 6—late last week—the Reserve Bank of India, led by Governor Sanjay Malhotra, surprised markets with a bold 50 bps repo rate cut to 5.5% and a 100 bps reduction in the cash reserve ratio (CRR), injecting around ₹2.5 trillion in liquidity. The move aims to boost the economy, which saw modest 6.5% growth in FY 2024‑25. Though inflation remains low, experts caution that such aggressive easing could reduce RBI’s future policy flexibility.

Heaviest May Rainfall Since 1901

• IMD data shows May 2025 recorded India’s heaviest rainfall since 1901, averaging 126.7 mm—more than double historical norms. Such anomalous precipitation has triggered both localized flooding and agricultural concerns. With extreme weather becoming more common, there’s renewed urgency to strengthen infrastructure resilience and climate-adaptive planning.

UP Launches Weeklong Drive Against Child Labour

• Starting June 12, Uttar Pradesh initiated a targeted campaign through June 19 to curb child labor, collaborating with UNICEF and promoting educational access via Atal residential schools. The move highlights UP’s proactive stance, as social security coverage in India rose to 64.3% of the population. Additionally, the burgeoning gig workforce—projected to reach 25 million by 2030—was recognized with calls for tailored protection and benefits.

Traffic Survey Across Key South Delhi Junctions

• Delhi Traffic Police, working with the Institute of Road Traffic Education, commenced engineering surveys at Chirag Dilli and RTR Marg to identify root causes of congestion by June 23 and mid-July, respectively. Early diagnostics point to poor signage, flawed lane design, and signal inefficiencies. The findings will guide infrastructure-led decongestion efforts.

₹22,000 Crore Rural Push in Uttar Pradesh

• In last week’s UP budget framework, the state proposed a ₹22,000 crore campaign for rural development in FY 2025‑26—split between ₹10,500 crore from central support and ₹11,500 crore state funding. The plan earmarks ₹2,000 crore for sanitation and ₹1,000 crore for infrastructure, including roads and water, reinforcing a robust rural agenda.

Sikh Outrage Over Modi’s G7 Invite

• Canada’s Sikh community has publicly protested Prime Minister Modi’s invitation to the G7 summit in Alberta, citing unresolved allegations tied to the 2023 killing of Sikh leader Hardeep Singh Nijjar. The controversy underscores the diplomatic tightrope between strategic engagement and human rights concerns as Canada and India navigate complex bilateral relations.

Operation Abhyaas: Nationwide Civil‑Defence Drill

• On May 7—but still resonating in recent updates—India conducted Operation Abhyaas, a large-scale civil defence mock drill across 244 districts, including blackout simulations and siren tests in Delhi, Mumbai, Hyderabad, and more. This drill reflects heightened preparedness amidst regional tensions and serves as a reminder of the country’s growing emphasis on national security readiness.

UPSIDA Rolls Out 13 Solar Plants in Uttar Pradesh

• The Uttar Pradesh State Industrial Development Authority announced the installation of 13 solar power plants across industrial zones—including Kanpur, Ghaziabad, and Moradabad—to lower operational costs, reduce carbon footprint, and electrify pathways in factories. A 150 kW model unit is already supplying clean energy at UPSIDA’s HQ, showcasing how green infrastructure can benefit both business and the environment.

Noida Authority Approves 5- & 7-Star Hotels

• To support the upcoming Noida International Airport and thriving commercial hubs, Noida Authority has green-lit five- and seven-star hotels (land plots for tenders), a housing redevelopment project, upgraded power grids, and cashless healthcare benefits for retirees. This move signals a push toward transforming Noida into an international investment and lifestyle zone.

India Distance from SCO’s Israel-Iran Condemnation

• At the SCO summit on June 13, India abstained from endorsing the bloc’s condemnation of Israel after its air strikes on Iran, instead issuing a diplomatic statement expressing concern over the rising tensions. Analysts say the decision underscores India’s careful balancing between global alliances and foreign policy nuances.

15 New Slots at Pune Airport, But Delayed Usage

• Airlines gained 15 additional takeoff/landing slots at Pune airport, raising total slots to 235, but no new flights are likely until after the monsoon (post-September/Ganesh Chaturthi) due to low traveler demand. Airlines must utilize 80% of new slots or risk forfeiture under AAI regulations.

Water Stress Hits Coal‑Power Expansion

• India’s ongoing $80 billion coal-power expansion is encountering serious water shortages—especially near Solapur, Maharashtra—impacting plant output and raising concerns of industrial vs. community water use. Experts warn of increasing friction unless water security is integrated into energy planning.

Public InvIT for NHAI to Attract Retail Investors

• The National Highways Authority of India is launching a public Infrastructure Investment Trust (InvIT) to widen investor access and boost infrastructure funding, part of its ongoing monetization roadmap. This move could democratize road infrastructure investment beyond large institutional players.

Energy Storage Transmission Waiver Extended

• To support its clean energy ambitions, India has extended its waiver on interstate transmission charges for energy storage systems (battery and pumped hydro) until June 30, 2028, alongside a ₹54 billion scheme for 30 GWh battery capacity. The extension boosts India’s capability to integrate intermittent renewables more effectively.

Jorhat‑Jhanji Highway Nears Completion

• In Assam, the Jorhat–Jhanji 4‑lane highway is now 97% complete after nearly a decade of work (₹738 crore project), pending bridge finishing over the Bhogdoi and Jhanji rivers. When fully operational, it will dramatically improve connectivity and transport in Upper Assam.

India’s week was defined by extremes—of emotion, policy, and climate. The loss of hundreds in the Air India tragedy served as a sobering call for aviation reforms, while the RBI’s aggressive stance underscored its intent to stimulate growth amid global uncertainty. At the same time, transformative initiatives—from solar grids and luxury hotel corridors to smart infrastructure financing—highlight the country's drive toward progress. As diplomatic nuance blends with grassroots action, India continues to stride forward, carrying both its burdens and aspirations into the weeks ahead.

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