The Narendra Modi government introduced significant economic reforms in 2025 to boost growth and employment in India, maintaining its position as the world’s fastest-growing economy. The winter session of Parliament witnessed the approval of measures such as allowing 100% foreign direct investment in insurance and opening the nuclear power sector to private players. Additionally, four labor laws were streamlined into four codes to enhance industrial efficiency while safeguarding workers’ interests.
Finance Minister Nirmala Sitharaman announced plans to revamp the Customs regime in the upcoming Union Budget for 2025-26, following the radical GST reforms. Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill 2025, increasing the FDI limit in the insurance sector to 100% to attract investments and improve services, aiming for “Insurance for All by 2047.” This reform seeks to enhance investment, innovation, and insurance coverage in the Indian market.
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 was also approved by Parliament to modernize India’s nuclear legal framework and support the country’s clean-energy transition. The bill allows private companies to engage in various nuclear activities, including power generation and equipment manufacturing, while ensuring India’s strategic control over its nuclear ecosystem.
Prime Minister Modi hailed the labor codes as comprehensive reforms empowering workers and simplifying compliance, marking a significant step towards Ease of Doing Business. The new codes mandate employers to issue appointment letters to workers, ensure social security coverage for all workers, and provide statutory minimum wages under the Code on Wages, 2019. These reforms also promote preventive healthcare culture and equal opportunities for women in the workforce.
