India's 2025 Reforms: GST, Income Tax, Labour Laws Drive Economic Resilience

• India's NDA government implemented major reforms in 2025 across taxation, labour, MSMEs, and legal frameworks, boosting economic resilience.
• GST 2.0 simplified tax structure to two rates (5%, 18%) and a 40% slab, reducing compliance and driving record Diwali sales.
• Income tax relief for middle class (no tax up to ₹12 lakh) and a new, concise Income Tax Act replaced the complex old framework.
• Labour reforms consolidated 29 laws into four codes, easing layoff rules for businesses with up to 300 workers and improving female workforce participation.
• Key reforms included increased MSME investment limits, 100% FDI in insurance, SHANTI Bill for nuclear sector, and the Bharatiya Nyaya Sanhita replacing IPC.

Why It Matters: India's 2025 reforms significantly streamlined economy, boosted growth, and modernized legal and tax systems.