PM Modi on What Was Key to India's Reform Express in 2025

“2025 will be remembered as a year for India,” wrote Prime Minister Narendra Modi while highlighting India’s reform journey, saying the government used the year to push through structural changes aimed at long-term economic stability, simpler governance and improved investment confidence.

Reflecting on the reform agenda, Modi said the focus in 2025 shifted from incremental policy tweaks to system-wide simplification, backed by governance continuity and execution capacity. According to the Prime Minister, these factors allowed reforms to be implemented across taxation, labour laws, business regulation and strategic sectors.

Tax and compliance reset

Tax reform remained central to the government’s agenda. The emphasis was on simplifying indirect taxes and reducing compliance costs, particularly for households, small businesses and manufacturers. On the direct tax front, legacy provisions were replaced with a more streamlined framework intended to reduce disputes and provide greater predictability to taxpayers.
Government officials say these measures were designed not only to offer relief, but also to improve clarity for investors who have seen regulatory uncertainty as a challenge.

Business and market reforms
For corporate India, 2025 brought changes aimed at easing regulatory pressure on smaller firms. The thresholds defining small companies were revised, allowing businesses to scale without immediately facing heavier compliance obligations.

In the financial sector, the government moved to increase foreign investment limits in insurance, a step expected to deepen capital pools and expand coverage. Market reforms were also initiated to consolidate securities regulations into a single framework, a move aimed at reducing overlap and improving regulatory efficiency.

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Labour and MSMEs in Focus

Labour reform continued to be a key pillar of the reform push. The government advanced the implementation of four consolidated labour codes, replacing a complex web of older laws. The stated objective is to balance worker protection with flexibility for employers, while encouraging formal employment.

Support for MSMEs remained a priority, with revised investment and turnover limits aimed at helping businesses grow without losing access to policy benefits.

Trade, Infrastructure and Energy

India also used 2025 to strengthen trade and infrastructure frameworks. New trade agreements were operationalised as part of efforts to integrate domestic manufacturing with global supply chains.

Reforms in shipping, ports and logistics focused on reducing costs and improving efficiency, while energy sector changes, including steps to allow greater private participation, were positioned as critical for sustaining industrial growth.

Regulatory cleanup

A quieter but significant part of the reform effort involved repealing obsolete laws and reducing criminal penalties for minor business offences, aimed at lowering compliance risks and improving trust between regulators and enterprises.

Economists note that the reform push comes amid global economic uncertainty, making domestic efficiency and investor confidence key. The government has framed 2025 not as an endpoint, but as a foundation for the next phase of India’s growth.