Answer

Introduction

“Reform Express 2025” signifies India’s departure from episodic, headline-driven policy shocks toward a model of continuous institutional deepening. By modernizing the “regulatory plumbing” of the state, India is converting private sector caution into long-term investment confidence, laying quiet foundations for the next growth phase.

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Legislative and Trade Reforms: Strengthening Investment

• Trust-Based Legislation: The transition from control-oriented regulation to facilitative governance is exemplified by the Repealing and Amending Bill, 2025, which removed 71 obsolete acts.
  Eg: The decriminalization of 4,458 minor offences, reducing “compliance fear” and legal harassment for entrepreneurs and MSMEs.
• Labor Market Modernization: The full implementation of four Labour Codes (Nov 2025) replaced 29 fragmented central laws, providing firms with operational flexibility while expanding worker social security.
• Digital Trade Facilitation: Moving beyond manual approvals, platforms like Trade Connect ePlatform and Bharat Aayat Niryat Lab Setu have integrated testing and certification digitally.
  Eg: National Single Window System (NSWS), one-stop digital platform that guides businesses on the approvals they need and helps them apply online
• Strategic Trade Diplomacy: India’s shift toward “commercially meaningful” FTAs (likeUK, EFTA, New Zealand) focuses on securing high-standard market access and investment commitments.
  Eg: The India-UK CETA (July 2025) provides duty-free access for 90% of Indian exports, significantly boosting engineering and textile sectors.

Associated Concerns

• Local Implementation Gaps: While central legislation is robust, district-level “inspector raj” and bureaucratic inertia in various states remain a significant bottleneck.
• Judicial Backlogs: Institutional reforms in trade and labor are often hampered by the slow pace of contract enforcement and dispute resolution in Indian courts.
• Regulatory Overlap: Multiple overlapping regulators in sectors like digital trade and green energy can lead to “policy cacophony,” confusing foreign investors.
• Global Headwinds: Despite domestic reforms, rising protectionism and “friend-shoring” in major economies may limit the gains from India’s trade facilitation efforts.

Significance for Long-Term Economic Competitiveness

• De-risking Long Cycles: Reforms in the SHANTI Act and maritime laws (Ports Act, 2025) provide the 20-30 year policy certainty required for capital-intensive sectors.
  Eg: The ₹69,725 crore shipbuilding package aimed at reducing India’s 95% maritime trade volume dependency on foreign vessels.
• Productivity Compounding: By reducing 47,000+ compliances, the state allows businesses to redirect resources from “form-filling” to R&D and innovation-led growth.
  Eg: India’s rise to 38th in the Global Innovation Index 2025 as a direct result of improved “regulatory quality.”
• Predictable Market Governance: The Securities Markets Code Bill strengthens SEBI’s enforcement capacity, ensuring that India’s capital markets remain transparent and deep.
  Eg: Upgrade of India’s sovereign credit rating to BBB in 2025, reflecting global trust in its institutional durability.
• Energy Security Buffer: Continuous reforms in deep-water exploration and nuclear energy ensure a stable, low-carbon base-load power for resilient manufacturing.
  Eg: Target of 100 GW nuclear capacity by 2047, supported by private participation under the new SHANTI framework.

Conclusion

The “Reform Express 2025” trajectory indicates that India has internalized a structural reality: in a fragmented world, competitiveness is earned through credible institutions rather than episodic announcements. Sustaining this momentum requires a “Team India” approach, where states match central reforms to ensure the “last mile” of doing business is as seamless as the first.

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