India is entering 2026 amidst a complex mix of geopolitical tensions, internal security commitments, and climate-driven economic strains. The country’s economy is growing above seven per cent, but it is currently engaged in resolving a trade dispute with the US involving significant tariffs on key exports. The government aims to reach a trade settlement early in 2026 to revive stalled investments following actions taken by the US President in 2025.
On the internal security front, Union Home Minister Amit Shah has set a target to eliminate Maoist presence in India by March 31, 2026. Despite progress in reducing Maoist activities over the years, achieving this goal remains a challenge. Notably, several states have been declared “Maoist-free,” and surrender rates among Maoists have increased significantly in 2025.
Security agencies have reported a decline in Maoist violence and a high conviction rate in terror-related cases. However, concerns about “white-collar terrorism” persist, especially after a terror incident in Delhi in November 2025. Following the attack, a network linked to Jaish-e-Mohammed, including individuals from a university, was dismantled, uncovering a terror funding scheme.
Instances of cyber fraud have surged in 2025, leading to substantial financial losses for India. The President has highlighted the growing threats of cybercrime and digital fraud, emphasizing the importance of robust cybersecurity measures. The Supreme Court has recognized digital arrest scams as a national threat and has taken steps to combat them effectively.
In terms of foreign relations, experts stress the need for a cautious approach towards China in 2026. Despite efforts to maintain peace along the Line of Actual Control, tensions persist with a significant troop presence. The threat from Pakistan remains a concern, necessitating continued vigilance along the north-western border. Additionally, unrest in Bangladesh poses challenges for India, particularly following political changes in the neighboring country.
