Economic reforms in 2025 reflect a maturing phase of India’s governance, where the emphasis shifted decisively from “expanding regulatory frameworks” to “delivering measurable outcomes. This year’s initiatives emphasised ease of living, ease of doing business, and inclusive growth, aligning regulatory structures with India’s evolving economic aspirations.

 

In a major relief for Indian families and individual taxpayers, the Union Budget 2025-26 introduced substantial reforms in direct taxation, ensuring that annual incomes up to 12 lakh rupees are exempt from income tax under the new regime.

 

In a landmark reform, the Government of India consolidated 29 existing labour laws into four Labour Codes. These are the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. The new framework enhances ease of doing business while expanding wage security, social protection, and workplace safety for workers, including women, migrant, gig, and platform workers.

 

Rural employment reforms anchored in the enactment of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a modern statutory framework. It enhances livelihood security and integrates employment with community development.

 

The latest Next-Generation GST reforms mark a decisive step towards simpler taxation, lowering the burden on citizens, and improved ease of doing business. The move to a two-slab GST regime of 5 per cent and 18 per cent has reduced complexity,  improved ease of doing business, especially for MSMEs and small traders.

 

By simplifying taxation, modernising labour laws, strengthening MSMEs, boosting rural employment, and advancing digital payments, these measures collectively foster trust, resilience, and global competitiveness in India’s economy.