NEW DELHI, Dec 31: The year 2025 stood out as a major milestone in India’s economic journey. Instead of creating more rules, the government focused on making existing systems simpler and more effective.
The aim was clear-make daily economic life easier for citizens, workers, farmers, and businesses.
Across taxation, labour laws, GST, rural employment, MSMEs, and exports, the focus shifted to delivery, clarity, and trust.
These reforms were designed to reduce confusion, cut delays, and improve confidence in the system, helping India move toward steady and inclusive growth.
One of the biggest changes in 2025 was in income tax. People earning up to Rs 12 lakh a year were fully exempted from tax under the new system.
For salaried employees, this relief went up to Rs 12.75 lakh. This gave middle-class families more money to spend, save, or invest, helping boost demand in the economy.
The government also replaced the old income tax law with a new and simplified version. The new law used simple language, removed outdated rules, and made tax filing easier to understand.
A single “tax year” replaced the earlier confusing terms, reducing mistakes and disputes. More services went digital, and faceless systems reduced personal interaction, making tax administration faster and fairer.
In 2025, India brought together 29 labour laws into four clear labour codes. This made rules easier for businesses to follow while also giving stronger protection to workers. For the first time, gig workers and platform workers were brought under social security coverage.
Workers benefited from clearer wage rules, better safety standards, and expanded social protection. Women workers gained stronger maternity benefits and safer workplaces.
Employers benefited from simpler compliance and fewer inspections. Overall, these changes helped create a balanced system that supports both jobs and business growth.
Rural employment also saw a major shift. The old employment guarantee scheme, MGNREGA, was replaced with a new law, G RAM G, that promised 125 days of paid work to rural households each year instead of 100 earlier with promise to make wage payments faster and on time.
Small and medium businesses received strong support in 2025. Quality standards were introduced gradually so that small units were not burdened suddenly. Extra time, lower fees, and simpler testing rules helped them adjust smoothly.
Access to credit improved through easier loans, higher guarantee limits, and better working capital support. The definition of MSMEs was expanded, allowing more businesses to qualify for benefits and grow without fear of losing support. These steps helped boost jobs, innovation, and formalisation.
The Goods and Services Tax system was made easier to understand and follow. A simpler two-rate structure reduced confusion and paperwork. Lower tax rates on essential goods helped control household expenses.
Faster refunds and easier returns helped small businesses and startups manage cash flow. With simpler rules and better compliance, more people joined the GST system, strengthening government revenues without increasing pressure on honest taxpayers.
Exports received a focused boost through a new mission that brought together finance, market access, quality support, and logistics. Small exporters and first-time exporters received help to reach global markets. Special attention was given to districts and sectors that were earlier outside the export network, creating new jobs and opportunities.
Overall, 2025 marked a clear change in how economic policy was implemented. The focus moved away from heavy paperwork and complicated rules to clear outcomes and real benefits. By simplifying taxes, modernising labour laws, supporting rural workers, strengthening small businesses, and boosting exports, the year laid a strong base for long-term growth. (UNI)
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