NEW DELHI: In 2025, the Narendra Modi government introduced a series of major economic reforms aimed at boosting growth and employment, as India retained its position as the world’s fastest-growing economy amid a global slowdown. These reforms included allowing 100% Foreign Direct Investment (FDI) in insurance and opening the nuclear power sector to private players.
Parliament approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill 2025, raising the FDI limit in insurance from 74% to 100%, with the goal of expanding insurance access in India’s under-penetrated market. This move aims to attract capital, foster innovation, and achieve “Insurance for All by 2047” while strengthening policyholder protections.
The SHANTI Bill 2025, approved by Parliament, opens India’s nuclear sector to private participation. This bill modernizes the country’s nuclear framework to support its clean-energy transition, aiming for a 100 GW nuclear capacity by 2047. While private companies can now engage in nuclear operations, the government retains control over critical aspects like the nuclear fuel cycle, waste management, and security.
Additionally, the government implemented four new Labour Codes to streamline and modernize India’s labor laws, offering workers greater protection and ensuring compliance. These include mandatory appointment letters for workers, comprehensive social security for gig and platform workers, and statutory minimum wages for all sectors. Employers are also now required to provide free annual health check-ups for workers over 40, and women are allowed to work night shifts in all sectors, subject to safety measures.
These reforms also benefit India’s export sector, including textiles, garments, electronics, and pharmaceuticals, by simplifying compliance and workforce management, ensuring competitiveness in international markets.
Finance Minister Nirmala Sitharaman announced further reforms, including a revamp of the Customs regime, in the 2025-26 Union Budget, following the successful GST overhaul. Together, these measures aim to modernize India’s economy, promote industrial efficiency, and create more jobs. (IANS)
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