The government’s economic reforms in 2025 focus on outcome-based governance to benefit citizens and businesses by streamlining processes and boosting transparency. These reforms include simplifying taxation, updating labor laws, supporting MSMEs, promoting rural employment, and advancing digital payments. The Union Budget 2025-26 introduced significant changes in direct taxation, raising the income tax exemption to Rs 12 lakh annually, benefiting middle-class households.
In July 2024, a comprehensive overhaul of the Income-tax Act, 1961 led to the New Income Tax Act, 2025, simplifying language and enhancing enforcement mechanisms. The government consolidated 29 labor laws into four Labor Codes, improving ease of doing business and ensuring worker welfare. These reforms also extend social security benefits to gig and platform workers and enhance workplace safety for all employees.
The enactment of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, replaced the MGNREGA, offering improved livelihood security and extending employment guarantee to rural households. Quality Control Orders (QCOs) were implemented in a phased manner to support domestic production and MSMEs. The latest GST reforms aim to simplify taxation, reduce compliance costs, and strengthen the tax system’s citizen-centric approach.
The Export Promotion Mission (EPM) with an outlay of Rs 25,060 crore for FY 2025–26 to FY 2030–31 aims to enhance India’s trade competitiveness by supporting MSMEs and labor-intensive sectors. This mission integrates financial and non-financial support to empower exporters and boost the economy.
