Prime Minister Modi Highlights 2025 as a Landmark Year for India
A Vision for 2025
On Tuesday, Prime Minister Narendra Modi declared 2025 as a pivotal year for India, emphasizing the nation's journey towards reform across various sectors including taxation, labor, trade, energy, education, and rural employment. He stated that India has gained momentum in its reform agenda, which will significantly enhance its development trajectory and contribute to the vision of a developed nation.
Sustained National Mission
In a detailed post on LinkedIn, the Prime Minister highlighted that these reforms are part of a continuous national mission built on the progress made over the past 11 years. He noted, 'We have modernized institutions, simplified governance, and strengthened the foundation for long-term, inclusive growth.' Key measures included changes to the Goods and Services Tax (GST), which introduced a simplified two-tier structure of 5% and 18% to reduce disputes and enhance compliance.
Tax Relief for Middle Class
Middle-class taxpayers received significant relief, as individuals earning up to ₹12 lakh annually will no longer be subject to income tax. The old Income Tax Act of 1961 has been replaced by the Income Tax Act of 2025.
Support for Small and Medium Enterprises
Small and medium enterprises also benefited from the expansion of the definition of small companies to include firms with a turnover of up to ₹100 crore, simplifying compliance and reducing costs. The government has allowed 100% foreign direct investment in the insurance sector to enhance competition and improve services.
Strengthening Capital Markets
In the capital markets, the introduction of the Securities Market Code Bill aims to bolster investor protection, enhance governance, and simplify compliance through technology-driven systems.
Modernizing Maritime Laws
Five new maritime laws have been enacted to modernize logistics and reduce costs. Under the Jan Vishwas initiative, 71 outdated laws have been repealed to eliminate unnecessary criminalization.
Labor Reforms
Labor reforms have merged 29 old laws into four modern labor codes, expanding social security, protecting workers' rights, and encouraging women's participation in the workforce.
International Trade Agreements
India has entered into trade agreements with New Zealand, Oman, and the UK, and implemented a free trade agreement with the European Free Trade Association, enhancing market access and investment opportunities.
Nuclear Energy and Rural Employment
To responsibly expand nuclear energy and encourage private participation, the Peace Act has been introduced to meet the country's growing clean energy needs. The rural employment guarantee has been extended from 100 to 125 days under the Village Development Act of 2025 to strengthen infrastructure and livelihoods in villages.
Education Sector Reforms
In education, plans are underway to establish a single higher education regulator to replace multiple bodies like UGC, AICTE, and NCTE, promoting institutional autonomy, research, and innovation.
Philosophy Behind Reforms
Elaborating on the philosophy behind these reforms, Prime Minister Modi stated, 'These reforms have been crafted with empathy, considering the realities of small businesses, young professionals, farmers, workers, and the middle class... They accelerate our decade-long efforts to transition from a control-based economy to one founded on trust, placing citizens at the center.'