PM Modi Hails 2025 as Year of ‘Transformative Reforms’, Says India Has Boarded the Reform Express
- MGMMTeam
- Dec 31, 2025
- 4 min read
Prime Minister Narendra Modi on Tuesday described 2025 as a landmark year of transformative reforms for India, asserting that the nation has firmly “boarded the Reform Express” and made extraordinary strides in reshaping its economic and governance architecture. According to the Prime Minister, reforms this year have not been isolated policy tweaks, but substantial structural shifts spanning taxation, labour laws, business regulations, trade and more — positioning India at the centre of global attention.
In a detailed reflection on the year’s achievements, Modiji emphasised that the reform agenda has been a continuous national mission, focusing not just on growth metrics but on enabling citizens, entrepreneurs and institutions to thrive with dignity, confidence and clarity.
‘Reform Express’ and National Focus
Modiji wrote that the engine of this reform movement has been India’s young demography and the indomitable spirit of its people, adding that 2025 will be remembered as a year where reforms were deepened with higher ambition and faster execution. The government’s efforts, he said, combined long-term vision with practical policies aimed at strengthening the foundations of inclusive development.
According to the Prime Minister, the approach underlying these reforms prioritised collaboration over control and facilitation over regulation, shaped by wide consultation and guided by data to ensure that the benefits reach all sections of society.
Major Economic and Tax Reforms
A central feature of the year’s policy changes was the overhaul of the tax regime. The government implemented a fresh two‑slab Goods and Services Tax (GST) system, with rates of 5 per cent and 18 per cent that eased the burden on households, micro, small and medium enterprises (MSMEs) and labour‑intensive sectors, while also reducing compliance disputes and boosting consumer sentiment, especially during festive seasons.
In what was described as unparalleled relief for the middle class, the new tax framework exempted individuals earning up to ₹12 lakh from income tax. The six‑decade‑old Income Tax Act of 1961 was also replaced by the modern, technology‑driven Income Tax Act, 2025, aimed at simplifying tax administration and improving transparency.
For businesses, the definition of “small companies” was expanded to include firms with turnovers up to ₹100 crore, significantly reducing compliance costs for thousands of enterprises.
Business, Markets and Investment Reforms
The government’s reform agenda extended into regulatory and market frameworks. A Securities Market Code Bill was introduced in Parliament to enhance governance norms, strengthen investor protection, and reduce regulatory burdens in India’s capital markets.
In a major liberalisation move, 100 per cent foreign direct investment (FDI) was permitted in the insurance sector, intended to boost competition, improve service delivery and expand insurance penetration nationwide.
Labour, De‑regulation and Ease of Doing Business
Modiji labelled the year’s labour reforms as historic, noting the merger of 29 fragmented labour laws into four comprehensive codes that balance worker rights with business flexibility, enhance social security and promote safer workplaces.
The government also pursued regulatory simplification. Hundreds of outdated laws were repealed, and through the Repealing and Amendment Bill, 2025, 71 obsolete Acts were scrapped. Quality Control Orders (QCOs) across multiple sectors were revoked or suspended to lower production costs, boost exports and reduce prices for consumers.
Trade, Infrastructure and Global Engagement
On the global front, India expanded its economic footprint with new trade agreements and the operationalisation of a Free Trade Agreement (FTA) with the European Free Trade Association, India’s first such pact with developed European economies, covering Switzerland, Norway, Iceland and Liechtenstein. These deals are expected to boost investments, job creation and export opportunities.
Alongside trade pacts, reforms were made to streamline import quality checks as part of efforts to finalise a trade deal with the United States, using technology to cut red tape, reduce paperwork and shorten approval times for imports.
Social and Sectoral Reforms
Beyond economics, 2025 brought reforms in sectors such as rural employment and education. The Viksit Bharat‑GRAM Rozgar Guarantee framework raised the number of guaranteed work days for rural households, strengthening village infrastructure and livelihoods. A Bill to establish a unified regulator for higher education aims to replace overlapping institutions with a more effective system focused on research and innovation.
In the energy sector, reforms like the SHANTI Act were hailed as groundbreaking, enabling private participation in nuclear energy and supporting India’s clean energy transition.
The MGMM Outlook
2025 has emerged as a transformative year for India, marked by sweeping reforms that extend across the economic, regulatory, and social landscape. Prime Minister Narendra Modi highlighted the country’s decisive steps in overhauling taxation, labour laws, business regulations, and trade policies, describing these measures as structural shifts rather than incremental changes. The introduction of a simplified two-slab GST, the technology-driven Income Tax Act, 2025, and expanded definitions for small companies have significantly eased the burden on households and enterprises while boosting compliance transparency. Simultaneously, historic labour reforms consolidated 29 laws into four codes, balancing worker protection with business flexibility, and regulatory simplifications—including the repeal of outdated Acts and Quality Control Orders—have cut costs and enhanced competitiveness across sectors.
India’s reform momentum also extended to trade, investment, and social development. The country has opened its insurance sector to 100% FDI, streamlined import procedures to support global trade, and entered new Free Trade Agreements with developed European economies, aiming to attract investment and expand exports. Sectoral reforms in rural employment, higher education, and energy further highlight the government’s drive to combine economic growth with inclusive development. With a people-centered approach, these measures reflect a strategic effort to position India as a resilient, globally engaged economy, capable of offering opportunities for citizens, entrepreneurs, and investors alike.
(Sources: India TV News, Business Today, Moneycontrol)
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