Paper: GS – III, Subject: Economy, Topic: Economic Reforms, Issue: governance Reforms in 2025.
Context:
As 2025 draws to a close, India’s economic story is increasingly shaped not by headline-grabbing announcements but by systemic governance reforms under the banner of Reform Express 2025.
- These reforms focus on improving state capacity, regulatory certainty, and investor confidence, laying the groundwork for sustained high growth.
Key Highlights:
Key Highlights of India’s Reform Express 2025:
The following points summarize the key reforms and their impact on India’s economic landscape.
Macroeconomic Stability and Global Recognition:
- Economic Growth: India’s nominal GDP crossed $4.1 trillion, surpassing Japan to become the world’s fourth-largest economy.
- Sovereign Rating Upgrade: Standard and Poor’s upgraded India’s sovereign rating to BBB after 18 years, indicating enhanced macroeconomic stability and investor confidence.
- Stable Leadership: India’s stable political leadership has made reforms credible, encouraging private investment.
Trade and Export Enhancements:
- Export Growth: India’s total exports reached $825.25 billion in 2024-25, with an annual growth of over 6%.
- Digital Tools: The government introduced digital platforms like the Trade Connect ePlatform and the Trade Intelligence and Analytics (TIA) portal to support trade.
- Trade Agreements:
- India-UK Comprehensive Economic and Trade Agreement: Provided duty-free access and clearer pathways for services and skilled mobility.
- Comprehensive Economic Partnership Agreement with Oman: Strengthened a strategic economic corridor for goods, services, and investment.
- Free Trade Agreement with New Zealand: Expanded India’s reach into high-value markets.
Startup and Digital Economy Boost:
- Startup Expansion: The startup sector expanded to over two lakh government-recognized startups, creating more than 21 lakh jobs.
- Open Network for Digital Commerce (ONDC): Processed over 326 million orders, averaging more than 5.9 lakh daily transactions.
- Government e-Marketplace (GeM): Cumulative transaction value crossed ₹16.41 lakh crore, with ₹27.35 lakh crore worth of orders received by 11 lakh micro and small enterprises.
Legislative and Regulatory Reforms:
- Repealing and Amending Bill 2025: Cleared out 71 obsolete Acts.
- District Business Reform Action Plan 2025: Aimed to make local administrations more responsive and accountable.
- Labour Code Consolidation: Consolidated 29 central labour laws into four codes covering wages, industrial relations, social security, and workplace safety, effective from November 21, 2025.
- Securities Markets Code Bill: Modernized securities law, strengthened SEBI’s enforcement capacity, and proposed specialized market courts.
Logistics and Maritime Modernization:
- Indian Ports Act, 2025: Replaced a colonial-era framework with modern governance tools, including state-level dispute resolution and stronger safety norms.
- Merchant Shipping Act, 2025 and Carriage of Goods by Sea Act, 2025: Modernized shipping law, updating rules, liabilities, and dispute frameworks.
- Investment in Shipbuilding: Approved a package of ₹169,725 crore to strengthen shipbuilding, including a Maritime Development Fund of ₹25,000 crore.
Energy Sector Reforms:
- Oilfields (Regulation and Development) Amendment Act, 2025 and Petroleum and Natural Gas Rules 2025: Reduced investor risk by ensuring stability of terms and clearer approval timelines.
- Open Acreage Licensing Policy: Expanded exploration, with Round X offering 25 blocks across 0.2 million square kilometers.
- National Deep Water Exploration Mission: Focused on domestic resources, technology, and capability in complex exploration.
- Nuclear Energy Mission: Allocated ₹220,000 crore to accelerate small modular reactors and achieve 100 GW of nuclear capacity by 2047.
- Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill: Modernized India’s civil nuclear framework and opened pathways for private participation.
Infrastructure and Compliance Reduction:
- PM GatiShakti National Master Plan: Opened to the private sector to enhance infrastructure planning.
- Project Monitoring Group Portal: Onboarded over 3,000 projects valued at more than ₹276 lakh crore.
- Compliance Reduction: Reduced over 47,000 compliances and decriminalized 4,458 legal provisions.
- National Single Window System: Processed more than 8.29 lakh approvals.
The “Reform Express 2025” represents a comprehensive and strategic effort by the Indian government to create a more business-friendly environment. By focusing on deregulation, modernization, and digitization, these reforms aim to unlock India’s economic potential and pave the way for sustained double-digit growth.
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