Context:
An editorial analysis highlights how a series of incremental yet far-reaching reforms, termed “Reform Express 2025”, are laying the structural foundations for India’s next growth cycle. Through deregulation, trade integration, digitalisation, infrastructure upgrades, and legal simplification, India aims to transition from high single-digit growth to a sustained double-digit expansion by 2030.
Key Highlights:
Macroeconomic Milestones
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Nominal GDP crossed $4.1 trillion (2025), overtaking Japan to become the 4th largest economy.
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S&P upgraded India’s sovereign rating to BBB, the first upgrade in 18 years, reflecting improved fiscal credibility.
Trade & External Sector Reforms
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Exports reached $825.25 billion (2024–25), growing over 6% annually.
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Digital facilitation via Trade Connect ePlatform and Trade Intelligence & Analytics (TIA) portal.
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Major trade agreements:
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India–UK Comprehensive Economic and Trade Agreement (CETA)
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India–Oman Comprehensive Economic Partnership Agreement (CEPA)
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FTA negotiations concluded with New Zealand
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Startup, Innovation & Digital Economy
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Over 2 lakh recognised startups, generating 21 lakh+ jobs.
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ONDC processed 326 million orders, empowering MSMEs and small traders.
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India ranked 38th in the Global Innovation Index.
Ease of Doing Business & Governance Reforms
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Repealing and Amending Bill, 2025 removed 71 obsolete laws.
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District Business Reform Action Plan (2025) introduced.
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47,000+ compliances reduced and 4,458 legal provisions decriminalised.
Infrastructure & Sectoral Push
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PM GatiShakti National Master Plan opened to the private sector.
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Indian Ports Act, 2025 modernised port governance.
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₹69,725 crore shipbuilding package, including ₹25,000 crore Maritime Development Fund.
Labour, Capital & Energy Reforms
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Four Labour Codes (effective Nov 21, 2025) subsumed 29 central labour laws.
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Securities Markets Code Bill to modernise securities regulation and strengthen SEBI.
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Oilfields (Regulation and Development) Amendment Act, 2025 and PNG Rules, 2025 lowered investor risk.
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Nuclear Energy Mission (₹20,000 crore) and SHANTI Bill opened private participation in nuclear energy.
Relevant Prelims Points:
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Issue: Structural reforms underpinning India’s medium-term growth.
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Key Drivers:
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Deregulation and legal simplification
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Trade liberalisation via FTAs
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Digital public infrastructure (ONDC, Trade Connect)
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Important Acts & Policies:
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Repealing and Amending Bill, 2025
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Indian Ports Act, 2025
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Four Labour Codes
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SHANTI Bill
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Impact:
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Improved investment climate
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Export competitiveness
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Innovation-led growth
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Relevant Mains Points:
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Key Definitions:
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Nominal GDP: Market value of final goods and services at current prices.
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Sovereign Rating: Measure of a country’s creditworthiness.
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FTA: Agreement reducing trade barriers between countries.
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Decriminalisation: Removal of criminal penalties for regulatory offences.
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Economic Analysis:
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Credible reforms convert private caution into private investment.
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Digital platforms reduce transaction costs and improve market access.
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Governance Perspective:
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Rule simplification enhances state capacity and regulatory trust.
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Challenges:
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Translating reforms into broad-based job creation
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Managing regional and sectoral disparities
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Way Forward:
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Deepen manufacturing and export-led growth
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Strengthen skilling aligned with labour reforms
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Ensure fiscal sustainability alongside infrastructure push
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Institutionalise reform momentum beyond political cycles
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UPSC Relevance (GS-wise):
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GS 3: Indian Economy, Growth, Infrastructure, Energy
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GS 2: Governance, Regulatory Reforms
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Prelims: GDP, FTAs, labour codes, decriminalisation