Budget 2025-26 Economic Agenda: Regulation, FDI and Tax Reform
Why in the news
Amid global volatility, Budget 2025-26 signalled a growth and stability agenda built on simpler regulation and stronger competitiveness.
Key facts
- A high-level committee on regulatory reform will tackle License Raj; the Financial Stability and Development Council (FSDC) will review existing rules and impact assessments.
- Jan Vishwas Bill 2.0 limits over-enforcement.
- India is a capital importer (FDI up 26%) and exporter (outward FDI up 17%); a renewed BIT is planned.
- Insurance FDI cap: 74% to 100%, to lift low penetration.
- Tax approach: trust first, scrutinise later; income tax cuts to raise disposable income and demand.
- Faster corporate mergers planned, without clear timelines.
Concerns
- No concrete roadmaps or timelines.
- FSDC and reform panels need clear mandates to avoid delays.
- Weak accountability could make reforms perfunctory.
Exam angle
- Insurance FDI limit: 74% to 100%.
- Related terms: License Raj, BIT, FSDC.