Economic Policy Reforms

Prime Minister Narendra Modi's government has enacted significant policy reforms aimed at strengthening India's economy amid global trade challenges.

• Parliament approved bills to open the nuclear industry to private firms and allow full foreign ownership of insurance companies.
• The finance minister proposed unifying India's securities market laws under a single code to modernize and encourage more market participation.

Impact of Reforms

These reforms are designed to unlock substantial investments and align with Modi's vision of transforming India into a developed nation within two decades.

• The Adani Group plans to build a commercial nuclear energy project, leveraging these changes.
• The government cut consumption taxes and overhauled labor codes to attract business investments.
• Trade talks have been accelerated, including a new free trade agreement with Oman.

Economic Projections and Challenges

• Economists predict 6.9% growth for 2026, although a consistent 8% growth is needed to reach developed-nation status by 2047.
• India's exports to the US have declined due to high tariffs; the rupee has also depreciated significantly.

Parliamentary Productivity

The recent parliamentary session was one of the most productive in five years, with 61.7 hours spent on legislation compared to 32.4 hours last year.

• Eight bills were passed, reinvigorating Modi's Bharatiya Janata Party.

Strategic Considerations

• The rupture with the US has pushed India to improve its business climate urgently.
• Recent state election victories have strengthened Modi's position to implement these changes.