States and Capitals

Featured

States and Capitals – How Many States in India?

India, a vast South Asian nation and the world’s seventh-largest by land area, is divided into 28 states and 8 union territories, each with its own capital. These states and territories are further segmented into districts. New Delhi, situated in the National Capital Territory of Delhi, serves as India’s administrative, political, and cultural hub.

The states and capitals of India weave a rich and diverse tapestry, reflecting the country’s deep cultural heritage, traditions, and innovations. Exploring these regions offers a fascinating journey through time, blending ancient legacies with modern advancements, tradition with contemporary influence, and showcasing India’s remarkable unity in diversity.

In 1956, India reorganized its states according to linguistic demographics. Today, the country consists of 28 states and 8 Union Territories, home to nearly 400 cities. Among these, eight major metropolitan cities—Kolkata, Mumbai, New Delhi, Chennai, Hyderabad, Bangalore, Ahmedabad, and Pune—are prominent. The Prime Minister has introduced a plan to develop 100 smart cities across the nation, with Indore being recognized as the Smart City for four consecutive years. Discover India’s dynamic urban landscape and its focus on modernization.

How many states in India?

India is the 7th largest country in the world by land area and the 2nd most populated. The country is divided into states and union territories so that the government can function properly. Below is a list of all 28 states, their capitals and the year they were formed.

S.NO	State	Capital	CM	Governor
1	Andhra Pradesh	Amaravati	Sri Nara Chandrababu Naidu	S. Abdul Nazer
2	Arunachal Pradesh	Itanagar	Pema Khandu	Kaiwalya Trivikram Parnaik
3	Assam	Dispur	Himanta Biswa Sarma	Lakshman Prasad Acharya
4	Bihar	Patna	Nitish Kumar	Arif Mohammed Khan
5	Chhattisgarh	Raipur	Vishnu Deo Sai	Ramen Deka
6	Goa	Panaji	Pramod Sawant	P.S. Sreedharan Pillai
7	Gujarat	Gandhinagar	Bhupendra Patel	Acharya Dev Vrat
8	Haryana	Chandigarh	Nayab Singh Saini	Bandaru Dattatraya
9	Himachal Pradesh	Shimla	Sukhvinder Singh Sukhu	Shiv Pratap Shukla
10	Jharkhand	Ranchi	Hemant Soren	Santosh Kumar Gangwar
11	Karnataka	Bengaluru	Siddaramaiah	Thaawarchand Gehlot
12	Kerala	Thiruvananthapuram	Pinarayi Vijayan	Rajendra Vishwanath Arlekar
13	Madhya Pradesh	Bhopal	Mohan Yadav	Mangubhai Chhaganbhai Patel
14	Maharashtra	Mumbai	Devendra Fadnavis	C.P. Radhakrishnan
15	Manipur	Imphal	N. Biren Singh	Ajay Kumar Bhalla
16	Meghalaya	Shillong	Conrad Kongkal Sangma	C H Vijayashankar
17	Mizoram	Aizawl	Lalduhoma	General (Dr.) Vijay Kumar Singh, PVSM, AVSM, YSM (Retd.)
18	Nagaland	Kohima	Neiphiu Rio	La. Ganesan
19	Odisha	Bhubaneswar	Mohan Charan Majhi	Dr. Hari Babu Kambhampati
20	Punjab	Chandigarh	Bhagwant Singh Mann	Gulab Chand Kataria
21	Rajasthan	Jaipur	Bhajan Lal Sharma	Haribhau Kisanrao Bagde
22	Sikkim	Gangtok	PS Golay	Om Prakash Mathur
23	Tamil Nadu	Chennai	M. K. Stalin	R. N. Ravi
24	Telangana	Hyderabad	Anumula Revanth Reddy	Jishnu Dev Varma
25	Tripura	Agartala	Dr. Manik Saha	Indra Sena Reddy Nallu
26	Uttar Pradesh	Lucknow	Yogi Aditya Nath	Anandiben Patel
27	Uttarakhand	Dehradun	Pushkar Singh Dhami	Lt. Gen. Gurmit Singh
28	West Bengal	Kolkata	Mamata Banerjee	Dr. C.V. Ananda Bose

Union Territories of India and Their Capitals

India has 8 union territories that are managed by the central government. Some of them have their own legislative assemblies. Below is the of these union territories and their capitals:

S.NO	Union Territories	Capital	CM	Lt. Governor
1	Andaman and Nicobar Island	Port Blair	NA	D K Joshi
2	Chandigarh	Chandigarh	NA	Banwarilal Purohit
3	Dadra and Nagar Haveli and Daman and Diu	Daman	NA	Praful Patel
4	Delhi	Delhi	Rekha Gupta	Vinai Kumar Saxena
5	Ladakh	NA	NA	B. D. Mishra
6	Lakshadweep	Kavaratti	NA	Praful Patel
7	Jammu and Kashmir	NA	Omar Abdullah	Manoj Sinha
8	Puducherry	Pondicherry	N. Rangaswamy	C. P. Radhakrishnan

Difference Between States and Union Territories

India is divided into states and Union Territories for administrative purposes. They are in different in how they are governed.

Basis of Difference	States	Union Territories
Head of Administration	Governor	Administrator or Lieutenant Governor
Government Type	Elected by the People	Managed by the central government
Powers	Shares power with the central government.	Controlled directly by the central government.

Indian States and their Languages

India is a country with a rich and diverse linguistic heritage. There are over 121 languages spoken in India, and each state has its unique linguistic landscape. The Indian Constitution recognizes 22 languages as “scheduled languages,” which are given special status in government and education.

S. No.	States	Language
1	Andhra Pradesh	Telugu and Urdu
2	Arunachal Pradesh	Miji, Apotanji, Merdukpen, Tagin, Adi, Honpa, Banging-Nishi
3	Assam	Assamese
4	Bihar	Hindi
5	Chhattisgarh	Hindi
6	Goa	Marathi Konkani
7	Gujarat	Gujarati
8	Haryana	Hindi
9	Himachal Pradesh	Hindi and Pahari
10	Jharkhand	Hindi
11	Karnataka	Kannada
12	Kerala	Malayalam
13	Madhya Pradesh	Hindi
14	Maharashtra	Marathi
15	Manipur	Manipuri
16	Meghalaya	Khashi, Jaintia, And Garo
17	Mizoram	Mizo and English
18	Nagaland	Ao, Konyak, Angami, Sema, and Lotha
19	Odisha	Oriya
20	Punjab	Punjabi
21	Rajasthan	Rajasthani and Hindi
22	Sikkim	Bhutia, Hindi, Nepali, Lepcha, Limbu
23	Tamil Nadu	Tamil
24	Telangana	Telugu
25	Tripura	Bengali, Tripuri, Manipuri, Kakborak
26	Uttar Pradesh	Hindi
27	Uttarakhand	Hindi
28	West Bengal	Bengali

Some Key Facts About Indian States

Each state in India is unique and has something special. Here are some interesting facts about a few states:

Andhra Pradesh: Famous for spicy food and historical sites like Charminar.
Assam: Know for tea gardens and Kaziranga National Park, home to the one-horned rhinoceros.
Bihar: A place with a rich history, home to Bodh Gaya and the ancient city of Pataliputra.
Goa: Popular for beautiful beaches and a lively nightlife.
Kerala: Famous for its backwaters, Ayurveda treatments and lush green nature.
Maharashtra: Mumbai, the financial capital, is also home to Bollywood.
Himachal Pradesh: Known for stunning hill stations and adventure sports.
Tamil Nadu: Famous for classical dance forms and grand temples.

Veteran Socialist Leader Charupara Ravi Passes Away at 77

States and Capitals - How Many States in India?_4.1

Charupara Ravi, the state vice-president of the Rashtriya Janata Dal (RJD) and a committed socialist leader, passed away on Tuesday at the age of 77. He breathed his last at a private hospital in Thiruvananthapuram, where he was under treatment. Known for his unwavering dedication to socialist ideals, Ravi was also serving as the chairman of the party’s parliamentary board at the time of his passing.

A Life Committed to Political Activism

Ravi’s involvement in political movements began early in life. From the age of 18, he had been actively engaged in Janata Dal organisations and was a vocal advocate for the common man. He first gained attention as a member of the Independent Student Organisation (ISO) and later went on to become the president of Yuvajanatha, a youth socialist outfit that played a significant role during the emergence of the Janata Party government in 1977.

Over the decades, Ravi’s role as a grassroots leader helped nurture the political spirit among young socialists in the state. He was not just an office-bearer but a full-time party worker, remembered for his simplicity, accessibility, and constant presence during party protests and public meetings.

A Political Career Marked by Commitment and Struggle

Ravi contested in multiple Kerala Legislative Assembly elections, demonstrating his dedication to electoral politics. He stood as a candidate from:

Aryanad in 1980
Neyyattinkara in 1996
Nemom in 2011

Though he never entered the assembly, his consistent participation in the democratic process made him a respected figure among colleagues and constituents alike.

NTPC Simhadri Celebrates 28th Raising Day with Pride and Purpose

NTPC Simhadri, one of India’s premier thermal power stations, celebrated its 28th Raising Day on Tuesday, July 8, at its administrative premises located in Parawada, Anakapalli district of Andhra Pradesh. The occasion marked nearly three decades of dedication, innovation, and community-focused progress.

Leadership and Ceremony

The event began with Sameer Sharma, Executive Director and Head of Project, hoisting the NTPC flag, followed by a rendition of the NTPC anthem. This solemn moment was attended by employees, officials, and invited guests, reinforcing the unity and spirit of the organization.

In his address, Mr. Sharma took the audience through the inspiring journey of NTPC Simhadri, reflecting on its evolution since its establishment in 1997. Notably, Simhadri holds the distinction of being NTPC’s first coastal-based power station, a milestone that has shaped its unique identity within the national energy landscape.

Achievements Beyond Power Generation

Mr. Sharma emphasized not just the plant’s role in power generation, but also its wider contributions to sustainability and environmental responsibility. A major highlight he mentioned was the achievement of 100% ash utilization, a benchmark of eco-friendly industrial practice. This means that all the ash generated during the coal-based power generation process is being effectively used, reducing waste and promoting environmental conservation.

He also underlined the plant’s ongoing commitment to social development, green initiatives, and various community outreach programs that go far beyond its core mission.

Celebrations and Community Engagement

The Raising Day celebration was marked with joyful events, including a cake-cutting ceremony that symbolized unity and shared success among the team. The event also included the distribution of prizes to winners of various internal competitions and awareness initiatives.

These included activities held as part of:

Swachhata Pakhwada (Cleanliness Fortnight)
World Environment Day
International Yoga Day

Such initiatives reflect NTPC Simhadri’s ongoing efforts to foster employee well-being, environmental awareness, and social responsibility.

A Vision for the Future

As NTPC Simhadri steps into its 29th year, the plant remains committed to driving forward its vision of reliable energy generation, sustainable operations, and community welfare. With a strong foundation built over 28 years, and a motivated workforce led by visionary leadership, NTPC Simhadri continues to set an example for modern, responsible industrial operations in India.

Bulgaria to Join Eurozone as 21st Member from January 1, 2026

States and Capitals - How Many States in India?_6.1

On July 8, 2025, the European Union (EU) finance ministers gave their final approval for Bulgaria to adopt the euro as its official currency starting January 1, 2026. This move will make Bulgaria the 21st member of the eurozone.

From Lev to Euro

Bulgaria will officially replace its national currency, the lev, with the euro. The fixed conversion rate is set at 1.95583 lev per euro. Prime Minister Rossen Jeliazkov hailed the decision as a “landmark moment” and reaffirmed the government’s commitment to a smooth and effective transition.

Reactions and Support

Top EU figures congratulated Bulgaria:

European Commission President Ursula von der Leyen said the euro would bring “big benefits for Bulgarian people and businesses”.
European Central Bank (ECB) President Christine Lagarde welcomed Bulgaria into the single currency area.
EU Economy Commissioner Valdis Dombrovskis stated that the change represents a brighter, more prosperous future at the heart of Europe.

Economic and Political Context

Bulgaria’s journey to the eurozone was delayed mainly due to high inflation, which prevented earlier accession. The European Commission and ECB recently confirmed that Bulgaria now meets the required economic criteria.

However, the shift comes amid political instability. Bulgaria has seen seven national elections in three years, with the last held in October 2024. Public opinion remains divided. Concerns over inflation and loss of purchasing power have led to protests in the capital, Sofia, with demonstrators demanding to retain the lev.

Strategic Importance

Proponents argue that joining the eurozone:

Will boost economic stability
Strengthen ties with Western Europe
Provide protection against external influences, including Russian interference

Critics, including some opposition leaders, previously suggested holding a referendum, but this was dismissed by the Bulgarian parliament.

Enlargement of the Eurozone

When the euro was first introduced in 2002, only 12 countries adopted it. Since then, more have joined:

Slovenia (2007)
Cyprus and Malta (2008)
Slovakia (2009)
Estonia (2011)
Latvia (2014)
Lithuania (2015)
Croatia (2023)

With Bulgaria’s inclusion in 2026, the eurozone will have 21 member countries.

Criteria for Euro Adoption

To join the eurozone, EU countries must meet the Maastricht criteria, which include:

Low and stable inflation
Sound public finances
Stable exchange rates
Long-term interest rate control

Inflation must be no more than 1.5 percentage points higher than that of the three best-performing EU countries.

Key Points to Remember

Country: Bulgaria
New Currency: Euro (replacing lev)
Effective Date: January 1, 2026
Euro Exchange Rate: 1.95583 lev = 1 euro
Eurozone Membership Number: 21st country
Latest to Join Before Bulgaria: Croatia (2023)

Asia’s Oldest Elephant ‘Vatsala’ Passes Away at Panna Tiger Reserve

In a deeply emotional moment for wildlife lovers, forest officials, and citizens across India, Vatsala, Asia’s oldest living elephant, breathed her last on Tuesday, July 8, 2025, at the Panna Tiger Reserve in Madhya Pradesh. She was believed to be over 100 years old, a rare and exceptional lifespan for an Asian elephant.

Her passing marks the end of an era—a life that spanned generations and symbolized the delicate harmony between humans and wildlife.

A Journey from Kerala to Madhya Pradesh

Vatsala’s long and remarkable life began in Kerala, from where she was later relocated to Narmadapuram and ultimately to the Panna Tiger Reserve. Over the years, she became an iconic presence at the reserve, capturing the hearts of tourists, forest staff, and wildlife conservationists alike.

A Matriarch and Guardian of the Forest

For years, Vatsala held a unique and honored role in the reserve as the leader of the elephant group. Her calm demeanor and natural authority made her a guiding presence for both young elephants and caretakers.

Whenever other female elephants gave birth, Vatsala instinctively assumed the role of a grandmother, nurturing the young calves with the same warmth and attentiveness as their mothers. Her social role within the herd underscored the complex emotional and familial bonds that elephants are known for.

Declining Health and Final Moments

In her final days, Vatsala faced increasing physical challenges. Due to old age, she had lost her eyesight and could no longer walk long distances. She was being cared for meticulously at the Hinauta Elephant Camp.

Every day, forest staff took her to the Khairaiyaan drain in the Hinauta range for bathing and provided her with a special diet, including porridge to ensure she received the necessary nutrition. Despite these efforts, her health had been gradually declining due to injuries in the nails of her front legs.

On the morning of July 8, Vatsala sat down near the Khairaiyaan drain and was unable to get up again. Forest department personnel made several attempts to assist her, but the majestic elephant passed away peacefully in the afternoon.

Veterinary Care and Compassionate Efforts

Throughout her twilight years, veterinarians and wildlife experts monitored Vatsala’s health regularly. Her longevity is widely credited to the dedicated care and compassion she received from the forest staff. Living in the dry and sparse forests of Panna, Vatsala defied the typical lifespan of elephants, living well beyond what is commonly observed even in protected environments.

Prime Minister Narendra Modi Honoured with Brazil’s Highest Civilian Award

Prime Minister Narendra Modi has been honoured with Brazil’s highest civilian award, the Grand Collar of the National Order of the Southern Cross. This recognition was presented by Brazilian President Luiz Inácio Lula da Silva as a mark of respect for the growing diplomatic, economic, and cultural ties between India and Brazil.

This honour represents not just an individual achievement for the Prime Minister, but also reflects the international recognition of India’s leadership and its growing influence on the global stage.

About the Award: Brazil’s Top Civilian Honour

The Grand Collar of the National Order of the Southern Cross is the most prestigious civilian honour in Brazil. It is awarded to heads of state and government leaders who have made outstanding contributions to strengthening Brazil’s relations with other countries.

By conferring this honour upon Prime Minister Modi, Brazil has acknowledged his efforts in enhancing India-Brazil strategic partnership, as well as his role in advancing cooperation through international platforms like BRICS, G20, and the United Nations.

A Symbol of Strong India-Brazil Relations

This honour is a powerful reflection of the deepening ties between the two democracies. India and Brazil share common values, such as respect for sovereignty, sustainable development, and a multipolar world order. Over the years, the two countries have collaborated in areas such as:

Trade and investment
Renewable energy
Agricultural technology
Space research
Global governance

Prime Minister Modi’s leadership has helped in building stronger bridges between the two nations, especially through multilateral forums and regional dialogues.

Pride for India on the International Stage

This is the 26th international award or honour given to Prime Minister Narendra Modi by a foreign nation since he assumed office in May 2014. These recognitions highlight India’s diplomatic strength, growing economic power, and the global trust in its leadership.

By honouring Prime Minister Modi, Brazil has also shown respect for India’s growing role in shaping global policies, especially in the Global South.

Widespread Appreciation from Indian Leaders

The announcement of this award has been widely celebrated in India. Leaders from across the country have expressed their appreciation for the honour, calling it a proud moment for all Indians. Many have acknowledged that this award is not only a recognition of Modi’s diplomacy but also a sign of India’s growing stature in international affairs.

India Successfully Tests Indigenous Extended Range Anti-Submarine Rocket (ERASR)

Introduction: Strengthening Maritime Defence

India has successfully completed the user trials of the Extended Range Anti-Submarine Rocket (ERASR), a fully indigenous weapon system developed to detect and destroy enemy submarines. This achievement marks a significant boost to the Indian Navy’s underwater warfare strength and supports the country’s goal of becoming self-reliant in defence technology.

Trials Conducted from INS Kavaratti

The trials of the ERASR system were carried out from the Indian Navy’s frontline warship, INS Kavaratti, between June twenty-third and July seventh, two thousand twenty-five. These tests were done under realistic operational conditions to simulate actual combat scenarios at sea.

A total of seventeen rockets were launched during these trials. Each rocket was tested at different ranges to measure performance across various distances, ensuring the system works accurately and effectively in a range of situations.

Statement from Defence Minister Rajnath Singh

India’s Defence Minister, Rajnath Singh, congratulated the Defence Research and Development Organisation (DRDO), the Indian Navy, and the domestic defence industry for the successful development and testing of this important naval weapon.

In an official statement posted on social media platform X, his office stated that the successful induction of this system will significantly enhance the striking power of the Indian Navy.

Key Features of the ERASR System

The Extended Range Anti-Submarine Rocket (ERASR) is designed to locate and destroy submarines hidden beneath the sea. What makes this system highly effective is its modern technology, precision, and range flexibility. Below are the key features that make ERASR a valuable asset:

Twin-Rocket Motor Configuration

ERASR uses a twin-rocket motor system which gives it the ability to cover a wide range of distances. This allows the system to be used for both short-range and extended-range targets, depending on the mission needs.

High Accuracy and Consistency

One of the most important aspects of any weapon is its accuracy. The ERASR has been designed with advanced targeting capabilities that ensure consistent accuracy, even in difficult sea conditions.

Electronic Time Fuze

The rocket includes a modern electronic fuze that controls the timing of the detonation. This allows the warhead to explode at the right moment, increasing the chances of successfully destroying a hidden submarine.

Warhead Functionality

The warhead of the ERASR has shown strong results during the tests. Each detonation met the expected standards, proving that the system is ready for real-time deployment.

Trial Results and Objectives

The Indian Navy confirmed that all objectives of the user trials were fully met. These included:

Range performance, where the rockets covered various distances successfully.
Electronic fuze functioning, which was accurate and reliable in every test.
Warhead activation, where all warheads performed exactly as planned.

This shows that the ERASR system is not only technologically sound but also operationally ready.

A Step Towards Self-Reliance

The successful testing of ERASR highlights India’s progress in becoming self-reliant in defence manufacturing, aligning with the national initiative of Aatmanirbhar Bharat. This system was developed through close collaboration between the DRDO, the Indian Navy, and the Indian defence industry.

It proves that Indian engineers and scientists are capable of developing cutting-edge defence technology that meets international standards.

In Which State/ UT is Kakakoram Wildlife Sanctuary is Located?

India has many wildlife sanctuaries that help protect animals and nature. These special areas are made to keep forests, mountains and rare animals safe. One such sanctuary is located in the northern part of India, high in the mountains. It is known for its cold weather, snow-covered peaks and rare animals like the snow leopard. This sanctuary plays a big role in saving wildlife in tough conditions.

Location of Karakoram Wildlife Sanctuary

Karakoram Wildlife Sanctuary is located in the Leh district of the Indian Union Territory of Ladakh. It lies in the easternmost part of the Karakoram mountain range. This area is cold and very high in altitude, which makes it different from most wildlife sanctuaries in India.

Year of Establishment and Size

This sanctuary was established in the year 1987. It covers a very large area of about 5,000 square kilometers (or 500,000 hectares). It is managed by the Wildlife Warden in Kargil, Ladakh.

Significance of the Sanctuary

The sanctuary is very important because it is one of the few places in India where you can find Chiru, also called the Tibetan Antelope. This animal is not usually found in other parts of the country.

It is also known as Nubra Shyok or Siachen Shyok Wildlife Sanctuary. The area has not been fully explored for its plants, making it special for research.

Biodiversity and Plants

Since this place is a cold desert, it has very little vegetation. But the few plants that grow here are rich in medicinal value. Some important and rare plants found here are:

Arnebia euchroma
Bergenia stracheyi
Ephedra gerardiana
Hyoscymus niger

These plants are useful in traditional medicines and are considered endangered.

Top-5 Chocolate Consuming Countries in the World in 2025, Know About Them

Chocolate is one of the most loved sweets in the world. People of all ages enjoy it in many forms like bars, cakes and hot drinks. Some countries eat more chocolate than others every year. This love for chocolate has made it a big part of their daily life. In this article, we will learn about the top-5 countries that consume the most chocolates in the world.

Top-5 Chocolates Consuming Countries in the World in 2025

Chocolate is one of the most loved sweets in the world. People enjoy it as a snack, dessert, or gift. In 2025, some countries are known for eating more chocolate than others. Here are the names of top-5 chocolates consuming countries in the world in 2025:

Luxembourg
Iceland
Montenegro
Latvia
Ireland

Luxembourg, World’s Largest Chocolate Consumer

Chocolate consumption: 27.1 grams per person per day

Luxembourg is the number one country in chocolate eating. People here enjoy about 27 grams of chocolate daily. Many residents buy premium (high-quality) chocolates. Since Luxembourg is close to countries like Belgium and Switzerland – famous for chocolates – people are used to eating fine chocolates often.

Iceland

Chocolate consumption: 19.7 grams per person per day

Iceland comes second. The people here eat nearly 20 grams of chocolate every day. Chocolate is a popular treat, especially during the long, cold winters. Icelanders like to mix chocolate with local sweets and baked goods, making it a part of their everyday food.

Montenegro

Chocolate consumption: 19.6 grams per person per day

Montenegro is in third place. In this country, chocolate is very popular among young people. Many types of chocolates are imported from nearby countries like Italy and Switzerland. People enjoy chocolates in their homes, cafes and during celebrations.

Latvia

Chocolate consumption: 18.8 grams per person per day

Latvia takes the fourth spot. Latvians have a big love for sweet foods, especially chocolate. Both local and foreign chocolate brands are sold widely. Chocolate-covered fruits and dark chocolate bars are favorites in this country.

Ireland

Chocolate consumption: 16.7 grams per person per day

Ireland is number five on the list. Chocolate is a big part of Irish culture. Famous brands like Cadbury are loved by many people. Chocolate is often given as a gift and enjoyed during festivals, holidays or as a daily snack.

RBI Financial Stability Report, June 2025

As the global economy navigates a period of significant uncertainty, India stands out as a beacon of stability and growth. The Reserve Bank of India’s latest Financial Stability Report (FSR), released in June 2025, paints a detailed picture of an economy that is not only expanding but doing so with remarkable strength across its financial sectors. While external risks from geopolitical tensions and trade disruptions are mounting, India’s robust domestic demand, cooling inflation, and a well-capitalised banking system provide a powerful shield, making it the world’s fastest-growing major economy.

This deep dive explores the key findings of the FSR, providing a comprehensive overview of the Indian economy’s performance, the resilience of its financial institutions, and the outlook for the future.

The Global Context: An Environment of Elevated Risk

The FSR begins by acknowledging that the global macroeconomic environment has become increasingly challenging. Near-term risks to financial stability have risen, driven by several key factors:

Policy and Trade Uncertainty: The announcement of large tariffs by the US administration in April 2025 has set off a wave of trade policy uncertainty, testing the resilience of the global economy. This has led international agencies, including the IMF, the OECD, and the World Bank, to revise their global growth forecasts downwards. The IMF, for instance, projects global growth to decelerate to 2.8% in 2025.
Soaring Public Debt: A recurring concern highlighted in the report is the issue of rising global public debt. According to IMF projections, global public debt is expected to reach 100% of GDP by the end of the decade, creating significant vulnerabilities, especially in an environment of slowing growth.
Volatile Financial Markets: Global financial markets remain volatile and are highly sensitive to economic and geopolitical developments. The market turmoil in April 2025 served as a stark reminder of how sudden shocks can amplify existing vulnerabilities, such as stretched asset valuations in several markets.

The Indian Economy: A Story of Domestic Strength

Despite the turbulent global backdrop, the Indian economy continues to be a primary driver of global growth, underpinned by sound fundamentals and prudent policies.

Robust GDP Growth

India’s economic momentum is primarily powered by strong domestic demand, which keeps it relatively insulated from global headwinds.

Growth Projections: The Indian economy grew at a healthy pace of 6.5 per cent in 2024-25. The Reserve Bank of India expects this strong performance to continue, projecting the same growth rate for the 2025-26 fiscal year. This is supported by buoyant rural demand, a revival in urban consumption, and rising investment activity.
Economic Expansion: Over the past decade, India’s economic size has nearly tripled. The GDP at current prices, which stood at ₹106.57 lakh crore in 2014-15, is expected to reach ₹331.03 lakh crore in 2024-25.

Inflation Firmly Under Control

A key pillar of India’s macroeconomic stability is the steady decline in inflation.

Record Lows: In May 2025, headline consumer price index (CPI) inflation recorded a six-year low of 2.8 per cent. This easing trend gives the RBI greater confidence in the durable alignment of inflation with its medium-term target of 4 per cent.
Favourable Outlook: The report notes that the outlook for food inflation remains favourable due to robust crop production. Additionally, the risk of imported inflation remains low, as a global growth slowdown is likely to soften commodity and crude oil prices.

Financial Sector Resilience: The Core of India’s Stability

The FSR provides a thorough assessment of India’s financial institutions, concluding that the system is resilient and bolstered by healthy balance sheets of banks, non-banks, and corporates.

A. Scheduled Commercial Banks (SCBs): A Picture of Unprecedented Strength

The Indian banking sector is described as robust, with capital buffers at a record high and non-performing loans at a multi-decadal low.

Capital Adequacy: The Capital to Risk-Weighted Assets Ratio (CRAR) of SCBs, a key indicator of a bank’s ability to absorb losses, increased to a record high of 17.3% in March 2025. The high-quality

Common Equity Tier 1 (CET1) capital ratio also rose to 14.7%, indicating a strong and healthy capital base.

Asset Quality: The asset quality of banks has shown remarkable improvement.

The Gross Non-Performing Asset (GNPA) ratio has declined to a multi-decadal low of 2.3%.
The Net Non-Performing Asset (NNPA) ratio fell to just 0.5%.
The Provisioning Coverage Ratio (PCR), which indicates the funds set aside for bad loans, was strong at 76.3% as of March 2025.

Macro Stress Tests: To gauge their resilience, banks were subjected to macro stress tests. The results reaffirm their strength, showing that even under a severe geopolitical risk scenario, the system-level CRAR would remain at 14.2%, well above the regulatory minimum of 9%. No bank would breach the minimum CET1 capital requirement under any of the adverse scenarios.

B. NBFCs and Other Financial Institutions

The resilience extends beyond banks to other key parts of the financial system.

Non-Banking Financial Companies (NBFCs): The NBFC sector remains healthy with strong capital buffers, reflected in a system-level CRAR of 25.8% in March 2025. While loan growth moderated following RBI’s measures to increase risk weights on certain consumer credit segments, the sector is well-positioned to support economic growth.
Urban Cooperative Banks (UCBs): The capital position of UCBs has also strengthened, with their CRAR rising to 18.0% in March 2025.
Insurance Sector: The insurance sector remains robust, with the aggregate solvency ratio for both life (204%) and non-life (166%) insurers remaining well above the minimum prescribed threshold of 150% as of December 2024.

External Sector and Key Regulatory Initiatives

India’s strong engagement with the global economy is managed from a position of strength, supported by proactive regulatory measures.

A Strong External Cushion: Foreign exchange reserves stood at a robust US$ 697.9 billion as of June 20, 2025, sufficient to cover more than 11 months of merchandise imports. The Current Account Deficit (CAD) was contained at a very manageable 0.6% of GDP in 2024-25 and even recorded a surplus in the final quarter.
Key Regulatory Developments: Regulators have been proactive in strengthening the financial system. Key domestic initiatives by the RBI include:

Introducing the Special Rupee Vostro Account (SRVA) framework to promote the internationalisation of the Indian Rupee.
Amending the Liquidity Coverage Ratio (LCR) framework to address risks from the rapid digitalisation of finance.
Consolidating instructions on Digital Lending to enhance transparency and protect consumers.

Systemic Risk Outlook: Cautious but Confident

The RBI’s Systemic Risk Survey (SRS), conducted in May 2025, captures the perceptions of experts on the challenges ahead.

Top Risks: Respondents identified geopolitical conflicts, capital outflows, and a reciprocal tariff/trade slowdown as the major near-term risks to India’s financial stability. Cyber risk and climate risk were also highlighted as high-risk concerns.
Confidence in India: Despite worries about the global system, confidence in the Indian financial system remains exceptionally high. An overwhelming 92% of respondents expressed higher or similar levels of confidence. Furthermore, about 80% believe the prospects for the Indian banking sector will either improve or remain unchanged in the coming year.

Which is the Newest District of Kerala? Know the Name

Kerala is a beautiful state in southern part of India, known for its green landscapes, backwaters and rich culture. It is divided into several districts to help the government work better and reach people easily. Sometimes, a new district is created when an odd one becomes too large or hard to manage. This helps improve development, public services and overall administration in that area.

An Overview of Kerala

Kerala, called ”God’s Own Country,” is a beautiful state in southwestern India. It is famous for its calm backwaters, green scenery and rich culture. On one side, it has the Western Ghats mountains and on the other, the Arabian Sea. This narrow strip of land, 35 to 120 km wide, is full of lagoons, coconut trees and peaceful natural beauty.

Number of Districts in Kerala

Kerala has a total of 14 districts. These districts help in managing the state’s administration smoothly. Each district has its own headquarters and plays an important role in local governance.

Newest District of Kerala

Kasaragood is the 14th and last formed district of Kerala. It was officially made a district on 24 May 1984. It is located in the northernmost part of Kerala. It shares its borders with Karnataka on the north and east, the Arabian Sea on the west, and Kannur district on the south. The district has many rivers, with 12 rivers – the highest in Kerala.

An Overview of Kasaragood

Kasaragood is known as the ”Saptha Bhasha Sangama Bhoomi,’‘ which means ”the land where seven languages meet.” The district is rich in culture, languages and natural beauty. It lies in the Western Ghats area, full of forests, hills and rivers. The longest river in the district is the Chandragiri River, which flows into the Arabian Sea near the Kasaragood town.

The town is also famous for historic forts, especially the Bekal Fort, which is the largest fort in Kerala. Other forts include Chandragiri Fort, Hosdurg Fort and Arikady Fort.