The Hindu Editorial Analysis
30 December 2025
The quiet foundations for India’s next growth phase
(Source – The Hindu, International Edition – Page No. – 8)
Topic : GS Paper – GS-3 : Economic Reforms, Governance, Infrastructure, Energy, Industrial Policy
Context
As 2025 draws to a close, India’s economic story is increasingly defined not by headline-grabbing announcements but by sustained, incremental governance reforms. The editorial argues that while spectacular growth narratives attract attention, the real drivers of India’s next growth phase lie in the cumulative impact of regulatory simplification, legislative clean-up, trade facilitation, logistics reform, and long-cycle energy investments. These “quiet reforms”, collectively described as Reform Express 2025, are strengthening macroeconomic durability and converting private caution into long-term investment confidence.
Core Issue
The central issue is whether incremental, credibility-building reforms—rather than disruptive policy shocks—can lay the foundations for sustained, broad-based economic growth.
India’s experience suggests that:
- Growth durability matters as much as growth speed,
- Predictable rules, time-bound processes, and regulatory clarity are essential for private investment,
- Structural reform is most effective when cumulative and institutional rather than episodic.
Macroeconomic Stability as a Growth Anchor
India crossed $4.1 trillion in nominal GDP, overtaking Japan to become the world’s fourth-largest economy. The upgrade of India’s sovereign rating to BBB after 18 years reflects improved macroeconomic resilience rather than transient growth spurts.
In a world marked by geopolitical churn and policy uncertainty, India’s political stability and reform continuity have:
- Enhanced investor confidence,
- Reduced policy risk premiums,
- Improved capital allocation efficiency.
Ease of Doing Business and Regulatory Simplification
A major pillar of Reform Express 2025 has been the systematic reduction of regulatory friction:
- Over 47,000 compliances eliminated,
- 4,458 legal provisions decriminalised,
- The National Single Window System processed over 8.29 lakh approvals by November 2025,
- Infrastructure planning expanded through platforms such as:
- PM GatiShakti National Master Plan,
- Project Monitoring Group, onboarding 3,000+ projects worth over ₹76 lakh crore.
These reforms reduce transaction costs and enable time-bound investment execution.
Trade Facilitation and Market Access
India’s exports touched $825.25 billion in 2024–25, growing over 6% annually.
Supporting measures include:
- Trade Connect ePlatform for exporters,
- Trade Intelligence and Analytics (TIA) portal for real-time market data.
On the external front:
- The India–UK Comprehensive Economic and Trade Agreement (July 2025) improved market access and mobility,
- A Comprehensive Economic Partnership with Oman strengthened India’s West Asia corridor,
- Negotiations concluded with New Zealand, expanding access to high-value markets.
These agreements reflect a shift towards disciplined, commercially meaningful trade diplomacy.
Legislative Clean-Up and Governance Reforms
Trust-based governance was reinforced through:
- The Repealing and Amending Bill, 2025, removing 71 obsolete laws,
- District-level reform initiatives under the Business Reform Action Plan 2025, aimed at predictable local administration.
Labour reforms gained momentum with the implementation of the four labour codes from November 21, 2025, consolidating 29 central laws into a simplified framework covering:
- Wages,
- Industrial relations,
- Social security,
- Workplace safety.
This provides the legal foundation for scale manufacturing and formal job creation.
Strengthening Market and Logistics Governance
Capital markets were modernised through the Securities Markets Code Bill, enhancing SEBI’s enforcement capacity, investor protection, and regulatory clarity.
Logistics reform addressed a key competitiveness bottleneck:
- Nearly 95% of India’s trade volume and 70% by value moves via maritime routes.
- The Indian Ports Act, 2025 modernised port governance,
- The Merchant Shipping Act, 2025 and Carriage of Goods by Sea Act, 2025 updated maritime law,
- A ₹69,725 crore package strengthened shipbuilding and port infrastructure.
A Strategic Focus on Energy
Energy reforms targeted long-cycle, capital-intensive investments:
- Amendments to the Oilfields (Regulation and Development) Act and new Petroleum and Natural Gas Rules, 2025 reduced investor risk,
- The Open Acreage Licensing Policy (OALP) Round X expanded offshore exploration,
- The National Deep Water Exploration Mission focused on domestic capability in complex exploration.
Budget 2025 introduced a Nuclear Energy Mission with an outlay of ₹20,000 crore:
- Targeting 100 GW nuclear capacity by 2047,
- Aiming for five indigenously designed SMRs by 2033,
- The SHANTI Bill modernised the civil nuclear framework and enabled regulated private participation.
Energy security thus becomes an enabler of industrial depth and technological confidence.
The Larger Strategic Pattern
Taken together, these reforms signal a clear strategy:
- Clean up legacy statutes,
- Decriminalise routine compliance,
- Strengthen market governance,
- Digitise trade and logistics,
- De-risk long-cycle investments in energy and infrastructure.
Rather than classic industrial policy, this approach creates an ecosystem where private capital can enter with clearer rules and longer horizons.
Conclusion
India’s next phase of growth is being built quietly, through cumulative institutional reform rather than headline-driven interventions. Reform Express 2025 reflects the strategic insight that the state’s most productive role lies in reducing friction, enhancing predictability, and enabling productivity compounding.
If sustained, these quiet foundations can support a durable phase of double-digit growth, grounded in credibility, resilience, and long-term investment confidence.