In response to ongoing US-India trade tensions and global economic uncertainties, India is accelerating reforms to improve its ease of doing business, signaling a strong pro-business stance.

Prime Minister Narendra Modi announced comprehensive policy reforms, including the creation of a Task Force for Next-Generation Reforms aimed at simplifying regulations and supporting start-ups, MSMEs, and entrepreneurs.

As part of these efforts, the government is establishing a high-level committee to overhaul non-financial sector regulations and rolling out Ease of Doing Business 2.0 to streamline tax processes.

Key initiatives include simplifying foreign investment rules, decriminalizing minor offences through the Jan Vishwas Bill 2.0, and launching an Investment Friendliness Index of States to foster competitive federalism.

Despite global trade growth forecasted at only 0.9% for 2025, India’s external sector resilience has helped maintain a stable macroeconomic environment amid tariffs, geopolitical tensions, and supply chain disruptions.

Next-generation GST reforms are planned to reduce tax burdens on essential items, aiming to provide relief to households, boost consumption, and attract foreign investment by improving credit ratings and lowering borrowing costs.

State-level deregulation, such as lifting restrictions on women working night shifts and easing doing business, will further enhance productivity and economic growth across India.

The government is also focusing on employment generation through schemes like PM Viksit Bharat Rozgar Yojana and reforms in education and skill development to prepare a workforce for changing global demands.

These reforms are designed to foster long-term growth by increasing disposable income, reducing inflation, and lowering business costs in the face of global uncertainties.

India’s external sector resilience has contributed to a stable macroeconomic environment, helping the country withstand external shocks and tariff adjustments.

India’s exports to the US are particularly affected by tariffs, but there is potential for duties to be lowered if trade uncertainties are resolved quickly.

These regulatory and trade reforms aim to create a more attractive environment for global investors, especially for Indian exporters facing tariff challenges.