Overview
- Prime Minister Narendra Modi said the reform drive will continue with greater vigour, as the government’s year-end assessment framed 2025 as a decisive push on ease of living and doing business.
- The new Income Tax Act took effect with zero tax up to ₹12 lakh, and GST 2.0 shifted to two main rates of 5% and 18% plus a higher rate on luxury and sin goods from September 22.
- Four consolidated labour codes came into force, replacing 29 laws to simplify rules, expand social security, and reduce compliance burdens for employers and workers.
- Parliament lifted the insurance FDI cap to 100% and passed the SHANTI Bill to allow select private entry in civilian nuclear projects, while a Securities Markets Code bill to unify securities laws was introduced.
- Early outcomes included an RBI repo rate cut to 5.25% after 125 bps of easing, 8.2% GDP growth in Q2, a busy IPO pipeline, and sectoral gains such as lower real-estate input costs after cement GST fell to 18%.