The Quiet Foundations For India’s Next Growth Phase

2025 marked a phase of quiet, cumulative reforms in India (Reform Express 2025) rather than headline-driven announcements.

Macroeconomic Performance and Global Standing

• Economic Size & Growth: India has crossed $4.1 trillion in nominal GDP, overtaking Japan (impacted by a weak yen and an aging, shrinking population) to become the world’s fourth-largest economy. 
  • This rise is underpinned by India’s demographic dividend, boosting consumption and production.
  • Nominal GDP: The total value of all final goods and services produced within a country in a year, measured at current market prices.
• Sovereign Rating Upgrade: Standard and Poor’s upgraded India’s sovereign rating to BBB after 18 years.
  • The upgrade signalled durability and resilience in India’s macroeconomic fundamentals.

Trade Performance and Digital Facilitation

• Export Growth: India’s total exports reached $825.25 billion in 2024–25, recording an annual growth of over 6%.
• Digital Trade Infrastructure: The Trade Connect e-Platform was introduced as a single digital window for exporters, designed to simplify export-related procedures and reduce transaction costs.
• Trade Intelligence and Analytics Portal: The Trade Intelligence and Analytics (TIA) portal provided real-time market data, enabling exporters to make informed decisions and respond quickly to global demand.

Bilateral and Regional Trade Pacts

• India–UK CETA (Comprehensive Economic and Trade Agreement): This created duty-free access for Indian exporters and also provided clearer pathways for services, trade and skilled mobility.
• India–Oman CEPA (Comprehensive Economic Partnership Agreement): It strengthened a strategic corridor for goods, services, and investment, enhancing India’s economic engagement in the Gulf region.
• India–New Zealand FTA (Free Trade Agreement): India concluded negotiations for an FTA with New Zealand, expanding access to high-value markets and setting a template for disciplined trade negotiations.

Startup Ecosystem and Digital Markets

• Scale of Startups: India’s startup ecosystem expanded to over two lakh government-recognised startups. 
  • These startups collectively created more than 21 lakh jobs.
  • India also improved its position in the Global Innovation Index (GII), rising to 38th place among 139 economies.
• Open Network for Digital Commerce: The ONDC processed over 326 million orders, averaging 5.9 lakh daily transactions. This strengthened competition and inclusivity in digital commerce.
  • ONDC is a Government of India initiative to democratise e-commerce by creating an open, interoperable network where buyers and sellers can transact across different platforms, not just on big marketplaces like Amazon or Flipkart.
• Government e-Marketplace: The GeM platform crossed ₹16.41 lakh crore in cumulative transaction value.
  • Over 11 lakh micro and small enterprises received orders worth ₹7.35 lakh crore.

Legal Cleanup

• Compliance Reduction: More than 47,000 compliance issues were reduced across sectors. Additionally, 4,458 legal provisions were decriminalised.
• Repealing and Amending Bill, 2025: Removed 71 obsolete acts in full, reducing legal clutter and the compliance burden.
• National Single Window System: By late November, the system had processed over 8.29 lakh approvals, improving predictability and reducing approval timelines.

District-Level Ease of Doing Business

• District Business Reform Action Plan 2025: The framework aimed to improve responsiveness and accountability at the local administration level. It brought ease of doing business closer to entrepreneurs.

Labour Market Reforms

• Consolidation of Labour Laws: The four labour codes, which came into effect on November 21, 2025, consolidated 29 central labour laws into simplified frameworks.
• Coverage Areas: The four labour codes are as follows:
  • Code on Wages (Universal Minimum Wage)
  • Industrial Relations Code (Disputes/Unions)
  • Social Security Code (PF/Pension/Insurance)
  • Occupational Safety Code (Health & Working Conditions)

Financial Market Reforms

• Securities Markets Code Bill: The Bill was introduced to modernise securities law and strengthen the Securities and Exchange Board of India’s (SEBI) investigative and enforcement capacity, with proposals for specialised market courts, stronger information sharing with regulators, and time-bound grievance redress.

Logistics and Maritime Reforms

• Trade Dependence on Shipping: Nearly 95% of India’s trade by volume and 70% by value moves through maritime routes. 
  • India’s logistics costs are around 13-14% of GDP, compared to the global standard of 8% of GDP.
• Indian Ports Act, 2025: The Act replaced a colonial-era framework and introduced modern governance tools, dispute resolution mechanisms, and stronger safety and environmental norms.
• Merchant Shipping Act, 2025: The Act modernised shipping regulations and aligned liabilities and dispute frameworks with contemporary commerce.
• Carriage of Goods by Sea Act, 2025: The Act updated legal rules governing maritime cargo transport and enhanced clarity in commercial shipping operations.

Shipbuilding and Industrial Policy

• Shipbuilding Support Package: The Cabinet approved ₹69,725 crore for shipbuilding. This included a ₹25,000 crore Maritime Development Fund.
  • The package aimed to reduce dependence, retain domestic freight value, and build industrial depth.

Energy Sector Reforms

• Oilfields Amendment Act, 2025: The Act emphasised the stability of contractual terms throughout the lease life cycle, thereby reducing investor risk and uncertainty.
• Petroleum and Natural Gas Rules, 2025: The rules introduced a single petroleum lease across project phases and also established clearer approval timelines.
• Open Acreage Licensing Policy: The Open Acreage Licensing Policy continued widening the exploration map, with Round X offering 25 blocks across about 0.2 million square kilometres, predominantly offshore, including deepwater and ultra-deepwater opportunities.
• National Deep Water Exploration Mission: The mission focused on domestic resources, technology, and capability. It strengthened India’s strategic energy security.

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Nuclear Energy and Strategic Technology

• Nuclear Energy Mission: The 2025 Budget allocated ₹20,000 crore for nuclear energy development, aligning with the national objective of reaching 100 GW of nuclear capacity by 2047.
• Small Modular Reactors (SMRs): India has set a target of five indigenously designed operational SMRs by 2033. 
• SHANTI Bill: The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill modernised the civil nuclear regime. It opened pathways for regulated private participation.
  • Nuclear energy adds low-carbon power to the grid and strengthens India’s ability to build advanced manufacturing, data infrastructure, and energy-intensive industry with greater confidence.

Conclusion

Reform Express 2025 focused on reforms that collectively reduced friction, uncertainty and the burden on entrepreneurs. This enabled productivity to compound and laid the foundations for the next phase of growth.

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