The quiet foundations for India’s next growth phase, Pg6

Key Highlights:

• India's nominal GDP crossed $4.1 trillion in 2025, surpassing Japan to become the world's fourth-largest economy.
• Standard and Poor's upgraded India's sovereign rating to BBB after 18 years.
• Total exports reached $825.25 billion in 2024-25, with over 6% annual growth, supported by digital tools like the Trade Connect ePlatform.
• India signed trade agreements with the UK (Comprehensive Economic and Trade Agreement) and Oman (Comprehensive Economic Partnership Agreement), and concluded FTA negotiations with New Zealand.
• The startup sector expanded to over 2 lakh recognized startups, creating over 21 lakh jobs, with ONDC processing over 326 million orders.
• India improved its ranking to 38th on the Global Innovation Index.
• Parliament passed the Repealing and Amending Bill 2025, eliminating 71 obsolete laws, and the District Business Reform Action Plan 2025 was introduced.

Detailed Insights:

• India's stable leadership has fostered credible reforms, converting private caution into private investment.
• Digital tools like the Trade Connect ePlatform and Trade Intelligence and Analytics (TIA) portal have streamlined trade processes.
• The India-UK Comprehensive Economic and Trade Agreement provides duty-free access and pathways for services and skilled mobility.
• The Comprehensive Economic Partnership Agreement with Oman strengthens a strategic economic corridor for goods, services, and investment.
• The Open Network for Digital Commerce (ONDC) has significantly boosted digital transactions, empowering micro and small enterprises.
• Simplification of business operations led to the reduction of over 47,000 compliances and decriminalization of 4,458 legal provisions.
• The PM GatiShakti National Master Plan has been opened to the private sector, enhancing infrastructure planning.
• The four labour codes, effective from November 21, 2025, consolidate 29 central labour laws into a simpler framework.
• The Securities Markets Code Bill aims to modernize securities law and strengthen SEBI's enforcement capacity.
• The Indian Ports Act, 2025 replaced a colonial-era framework, modernizing port governance and enhancing safety and environmental preparedness.
• A package of ₹69,725 crore was approved to strengthen shipbuilding, including a Maritime Development Fund of ₹25,000 crore.
• The Oilfields (Regulation and Development) Amendment Act, 2025 and new Petroleum and Natural Gas Rules 2025 reduce investor risk in the energy sector.
• Budget 2025 outlined a Nuclear Energy Mission with an outlay of ₹20,000 crore to accelerate small modular reactors.
• The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill opens a pathway for private participation in the nuclear sector.

Key Concepts Involved:

• Nominal GDP: The market value of all final goods and services produced in a geographical region, usually a country.
• Sovereign Rating: An independent assessment of a country's creditworthiness.
• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Decriminalisation: The process of ceasing to treat something as illegal or as a criminal offense.