.bashrc not executed when opening new terminal

It isn't necessarily run; at the top of the standard .bashrc is this comment:

# ~/.bashrc: executed by bash(1) for non-login shells.
# see /usr/share/doc/bash/examples/startup-files (in the package bash-doc)
# for examples

I believe there is an option to run bash terminal as a login shell or not. With Ubuntu, gnome-terminal does not normally run as a login shell, so .bashrc should be run directly.

For login shells (like the virtual terminals), normally the file ~/.profile is run, unless you have either ~/.bash_profile or ~/.bash_login, but they are not there by default. By default, Ubuntu uses only .profile.

The standard ~/.profile has this in it:

if [ -n "$BASH_VERSION" ]; then
    # include .bashrc if it exists
    if [ -f "$HOME/.bashrc" ]; then
        . "$HOME/.bashrc"
    fi
fi

This runs .bashrc if it is available - assuming $BASH_VERSION is present in your environment. You can check for this by entering the command echo $BASH_VERSION, and it should display some information on version number - it should not be blank.

In my case, simply the .bashrc loader lines were missing in .bash_profile

# include .bashrc if it exists
if [ -f "$HOME/.bashrc" ]; then
    . "$HOME/.bashrc"
fi

I added it manually and it worked with my fresh login

.bash_profile holds configuration for the bash shell. When you open a terminal, it first reads and executes commands from ~/.bash_profile. So you can add the following in .bash_profile to setup the shell according to bashrc.

. ~/.bashrc