India's Economic Reforms Drive Growth: DEA Strengthens Fundamentals for Future

The Department of Economic Affairs has strengthened India's economic fundamentals through coordinated policy across macroeconomics, capital markets, and infrastructure. Key achievements include exceeding capital expenditure targets, raising funds through Sovereign Green Bonds, and implementing measures to enhance market integrity and retail investor protection. Digital public infrastructure has been leveraged for financial inclusion, including the nationwide expansion of the retail Digital Rupee pilot. These reforms position the country for sustained future growth through improved regulatory frameworks and deepened securities markets.

Key Points: DEA Policies Strengthen India's Economy for Sustained Growth

  • Infrastructure capex exceeds targets
  • Green Bonds fund eco-projects
  • Market integrity measures strengthened
  • Digital Rupee pilot expands nationwide
  • Financial inclusion via "Chhoti SIP"
3 min read

DEA strengthens economic fundamentals, positions India for sustained future growth

India's Department of Economic Affairs implements key reforms in finance, infrastructure, and digital systems to bolster economic fundamentals and future growth.

"Capital expenditure monitoring by DEA enabled infrastructure ministries to achieve expenditure of Rs 10.46 lakh crore during FY 2024-25, exceeding revised estimates - Ministry of Finance"

New Delhi, Jan 17

The Department of Economic Affairs, through policies across macroeconomics, capital markets, infrastructure, digital finance and investor protection and empowerment, has strengthened economic fundamentals and positioned India for sustained future growth, according to the government.

For example, DEA guided India's economic management, fiscal strategy, and financial sector coordination, while implementing reforms to support growth, stability, investment, and global engagement in 2025.

According to a Ministry of Finance statement, the 16th Finance Commission submitted its Report for the award period from 2026-27 to 2030-31 to the President of India on November 17.

In 2025, a new sub-sector, "Large Ships," was added under the transport and logistics category of the Harmonised Master List.

Also, funds raised through Sovereign Green Bonds amounted to Rs 21,697.40 crore in FY 2024-25, with proceeds allocated to eligible green projects across ministries.

"Capital expenditure monitoring by DEA enabled infrastructure ministries to achieve expenditure of Rs 10.46 lakh crore during FY 2024-25, exceeding revised estimates, while IEBR expenditure also surpassed targets," said the statement.

Several measures were implemented to enhance market integrity and strengthen the regulatory framework.

For example, the public issue framework for SMEs was tightened with eligibility criteria, caps on offer-for-sale and General Corporate Purpose funds, and restrictions on using IPO proceeds for loan repayment. Trading and risk monitoring in equity derivatives were improved. Measures were introduced to curb expiry-day volatility.

"To mitigate risk of securities misuse by stock broker, securities for payout are now credited directly to client demat accounts by Clearing Corporations. Framework for safer participation of retail investors in algorithmic trading has been introduced," it added.

Moreover, to deepen and diversify India's securities markets, focused measures were undertaken to improve efficiency and participation.

Financial inclusion initiatives included the rollout of "Chhoti SIP" - SIP of Rs 250, aimed at encouraging first-time investors.

Digital public infrastructure was leveraged to enable retrieval and storage of mutual fund and demat statements through DigiLocker.

To prevent accumulation of unclaimed assets, nomination norms for demat accounts and mutual fund folios were revised.

A new UPI address structure for all SEBI registered intermediaries who collect funds from investors with effect from October 01, 2025 has been mandated.

To empower investors, a new tool "SEBI Check" has been rolled out, which will allow investors to verify the authenticity of UPI IDs and confirm the bank details such as bank account number and IFSC of a registered intermediary.

SEBI, in collaboration with the Ministry of Panchayati Raj (MoPR), has launched a nationwide training initiative for Block Level Panchayat representatives to promote financial literacy and investor education at grassroots level, empowering representatives with knowledge to educate rural communities across India.

"More than 100 critical financial systems across banking, payments, securities, and insurance were notified as Protected Systems under the Information Technology Act, 2000," said the statement.

These systems now operate under enhanced security controls, continuous monitoring, and periodic audits, strengthening operational resilience of platforms such as RTGS, NEFT, UPI, and securities depositories.

India remained among the few countries globally to conduct a live Central Bank Digital Currency pilot at scale.

The retail Digital Rupee pilot expanded nationwide, covering 82 lakh users and 11 lakh merchants as of November 2025.

The CBDC was made interoperable with UPI, enabling users to scan any UPI QR code across the country.

- IANS

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Reader Comments

R
Rohit P
Good to see tightening of SME IPO rules. Too many small companies were misusing funds. Direct crediting of securities to demat accounts is a major win for investor protection. SEBI Check for UPI IDs is also a much-needed tool to prevent fraud. Hope the execution matches the policy.
A
Aman W
The numbers are impressive, but will this growth reach the common man? Inflation is still a concern. Training panchayat reps for financial literacy is a great step, but we need to see real change in rural incomes. The fundamentals are strong on paper, let's hope the benefits are distributed fairly.
S
Sarah B
As someone working in fintech, the interoperability of CBDC with UPI is a game-changer. 82 lakh users is no small feat. Making DigiLocker a hub for financial statements is smart—reduces paper and increases accessibility. India's digital public infrastructure is becoming a global benchmark.
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Vikram M
Exceeding capex targets is commendable. Building roads, ports, and digital rails today will fuel our economy for decades. Adding "Large Ships" to the logistics list shows forward thinking for becoming a major export hub. Green bonds funding real projects is also a positive sign for sustainable development.
K
Karthik V
While the measures for market integrity are good, the real test is enforcement. We've seen volatility and manipulation before. Protecting critical financial systems as "Protected Systems" is absolutely vital for trust. Hope the audits are rigorous and not just a box-ticking exercise.

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