Reforms as Fuel

Tax Reforms

• FM highlighted the principle of "trust first, scrutinize later" in tax governance. 
• FM also highlighted key reform over the past decade (refer to the infographic) that have simplified compliance. 
• Building on these efforts, indirect tax reforms and changes in direct taxes were introduced (refer PART B for details). 

Financial Sector Reforms and Development

• FDI in Insurance Sector: FDI limit will rise from 74% to 100% for companies investing entire premiums in India. 
• Pension Sector: Forum for regulatory coordination and development of pension products to be setup. 
• KYC Simplification: Revamped Central KYC Registry will be rolled out in 2025 and a streamlined system for periodic updating will also be implemented.
• Merger of Companies: Scope for fast-track mergers will be widened and simpler.
• Bilateral Investment Treaties (BITs): Signed BIT with two countries (Uzbekistan and UAE, however BITs with these countries are not in force yet) in 2024. To encourage spirit of 'first develop India', the current model BIT will be revamped.

Regulatory Reforms

• Light-touch regulatory framework (emphasizes self-regulation) is proposed to update regulations that were made under old laws.
• To develop this modern, flexible, people-friendly, and trust-based regulatory framework appropriate for the twenty-first century 4 specific measures were proposed.