2025 - THE YEAR OF REFORMS

India has emerged as the centre of global attention.

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This is due to the innovative zeal of our people. Today, the world sees India with hope and confidence. They appreciate the manner in which the pace of progress has been accelerated with next-generation reforms, which are cross-sectoral and amplify the nation's growth potential. I have been telling many people that India has boarded the Reform Express.The primary engine of this Reform Express is India's demography, our young generation and the indomitable spirit of our people. 2025 will be remembered as a year for India when it focused on reforms as a continuous national mission, building on the ground covered over the past 11 years. We modernised institutions, simplified governance, and strengthened the foundations for long-term, inclusive growth.

We moved ahead decisively ... with higher ambition, faster execution and deeper transformation. The reforms have been about enabling citizens to live with dignity, entrepreneurs to innovate with confidence and institutions to function with clarity and trust. Let me cite a few examples of the reforms undertaken.

. A clean two-slab structure of 5% and 18% has been implemented.

· The burden has been eased on households, MSMEs, farmers and labour-intensive sectors.

· The purpose is to ensure dispute reduction and better compliance.

. This reform has boosted consumer sentiment and demand. Sales have grown in the festive season.

· In a first, individuals earning up to Rs. 12 lakh a year faced no income tax at all.

· Obsolete Income-tax Act of 1961 has been replaced with the modern and simple Income Tax Act, 2025.

· Together, these reforms mark India's move towards a transparent, technology-driven tax administration.

· Definition of "small companies" has been expanded to include firms with turnovers up to Rs. 100 crore.

· Compliance burdens and associated costs for thousands of companies will get reduced.

· 100% FDI permitted in Indian insurance companies.